What to do if you do not have the money to pay your taxes

What to do if you do not have the money to pay your taxes
September 07 09:05 2018 Print This Article

We have certain responsibilities towards our society. An instance of such responsibility is paying tax regularly. The government imposes charges on citizens as a means of raising revenue, which then is used to meet their budgetary demands. So, we must as responsible citizens should pay taxes on time.  But what if the end of tax filing extensions is near and you are running out of money? Economical ups and down is very common as well as natural. That should not become an obstacle in performing your duties.

So what are the other ways to pay the taxes?

Credit cards

The first and simplest option is your credit card. In this option, you will be able to charge your taxes on your master card or visa card or American express. Either of the following two sources can be helpful concerning this matter.

  • Official Payments Co-operation,
  • Link2Gov co-operation.

Installments

 Since credit cards are not used by everyone, it cannot be the only back up for paying the taxes. If credit cards are out of your option, then the government provides you another way too that is the way of paying your remaining balance on installments through an installment agreement. In addition, if you are completely unable to pay your part, not even in near future too, then you can get your tax amount reduced by applying for an offer in compromise program.

To avail your installment payment process, you have to attach a form 9465 to the front of your tax return. The installment plan is available for those who have a payable tax amount of not more than $25,000 and the amount that can be paid off within 5 years. If you are interested in the installment procedure, then do not forget to mention the amount and the date on which you want to pay the amount every month.

The IRS charges a $43 fee for the installment agreement and also an interest plus late penalty which is one-half of one percent of your unpaid tax amount per month. Also, they charge you an amount if you do not file your return within due date. The amount of penalty is usually 5 percent of the unpaid tax each month. The maximum penalty amount can be even 25 percent of your unpaid tax.

So, basically, the fact is that the IRS wants you to file your return timely and then they will work on the money issue. So, if you are under stress about filing your return, the above-mentioned points might help.

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Daniel Mike
Daniel Mike

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