Need more time to pay your taxes?
Need more time to pay your large tax bill as the filing deadline approaches? You're not alone. Many taxpayers simply are not prepared to pay off a large balance on the due date (April 18 for 2010). Most are unaware of the different options the IRS offers in order to help you pay off your tax burden. One "option" that does not work is filing for an automatic extension. All an extension grants you is extra time to file, not extra time to pay. If a taxpayer is likely to owe, then the anticipated tax balance due must be paid along with the extension request, or else they could be subject to penalties and interest.
Some things the IRS would like you to know if you need more time to pay are below...
- Pay as much as you can afford to on the due date. Doing this will result in reduced penalties and interest.
- Depending on the circumstances, a taxpayer could qualify for an extension to pay, an installment agreement, temporary delay or an Offer in Compromise.
- Taxpayers may want to consider financing the full payment of their tax liability. Often times this will be cheaper than the penalties and interest charged by the IRS.
- In some cases, the IRS may grant you an extra 120 days to pay off your liability in full. No fee is charged for this payment arrangement and it may result in reduced penalties and interest.
For more information on the three most common ways to pay off a tax balance, click here.
