Did you know you have options as to how to pay your taxes? There are options available for how you can submit your payments but not for when they are due. The IRS must receive your tax payment by April 17th. If you miss this deadline, you will be assessed penalties. To avoid costly penalties, either make your payment on time or file an extension, which also must also be received by April 17th.
Your options on how to pay your taxes include:
Mailing your payment to the IRS in the form of a check or money order.
Making your payment through an electronic funds transfer from your bank account.
Making a payment by credit card over the phone.
Using one of the online services available to pay by credit card, debit card or set up payment arrangements.
Also, if you cannot afford the entire balance by the deadline, you will want to reduce your balance due by as much as possible. The amount you will be charged in interest and penalties is based on the amount you owe, meaning if you owe less, you will be charged less.
The IRS will allow you to set up an installment agreement with options on how you want to pay it. For example, you can set up a payment schedule and have the payments deducted from your debit card, have your payment withheld from your paycheck, etc. For the installment agreement, the IRS will charge you a one-time fee of $105.00.
For more information and answers to all your tax-related questions, visit TurbTaxOnline today.
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