Information courtesy of IRS.gov

Do you owe more tax than you can afford to pay when you file? Make sure to file on time so you won’t have a penalty for filing late. Here is what to do if you can’t pay all your taxes by the due date.

• File on time and pay as much as you can. To avoid a late filing penalty pay as much as you can with your tax return. The more you pay on time, the less interest and late payment penalty charges you will owe.
• Pay online with IRS Direct Pay. It allows you to schedule payments online from your checking or savings account with no additional fee and with an immediate payment confirmation.
• Pay the rest of your tax as soon as you can. If it is possible, get a loan or use a credit card to pay the balance. The interest and fees charged by a bank or credit card company may be less than the interest and penalties charged for late payment of tax.
• Ask for an installment agreement. There is a direct debit plan, you won’t have to write a check and mail it on time each month. File Form 9465, Installment Agreement Request.
• Don’t ignore a tax bill.  If you get a bill, don’t ignore it. The IRS may take collection action if you ignore the bill. Contact the IRS right away to talk about your options. The IRS will work with you.

  Remember to file on time. Pay as much as you can by the tax deadline and pay the remainder due as soon as possible.