This year the filling deadline for your taxes is April 15, so it’s important to make sure you check your tax withholding with the IRS.
If you owe taxes, read on. Below you will find the options available to you, depending on your specific case.
What to Do if You Owe and Can Pay
Those who owe taxes and are in a position to pay them in full have a wide array of options available to them.
You can pay electronically for free using the Electronic Funds Withdrawal (EFW), Direct Pay or the Electronic Federal Tax Payment System. Other electronic options available are credit, debit card , digital wallet, or the app IRS2Go, but in those cases you may have to pay a fee.
Those who wish to pay in cash can do it with the PayNearMe option, but they must act well ahead of the tax deadline (again, April 15), since the process involves four steps. You should also keep in mind that payments are limited to $1,000 per day with a $3.99 fee for each payment.
Check and money order are other options available to you. In that case there are two important things to keep in mind: make the payment out to the “United States Treasury” and enclose a 1040-V form payment voucher.
What to Do if You Need an Extension
If you can’t pay your taxes right now, but you know you will be able to do it in the near future, you can request a six-month extension. This way you’ll avoid a penalty for not filing at all.
You can request an extension by filing form 4868 of making a partial payment indicating that the payment is for an extension.
What to Do if You Can’t Pay
If you can’t pay your taxes in full, don’t panic; there are options for you as well and you may qualify for one or more relief programs.
You may qualify to use Online Payment Agreement to set up a plan that may be short-term or long-term. The latter plan would allow you to pay your debt in monthly installments.
Another interesting option for those who can’t pay is an Offer in Compromise. This agreement between you and the IRS allows you to settle your debt for less than the full amount you owe. To determine if you qualify for an Offer in Compromise, you can use this free online tool provided by the IRS itself.
With the help of an expert you can file your taxes properly and in time, avoiding penalties and hassle.
At Meadville tax services we have the expertise and the drive to assist you with all your tax needs. Contact us today by telephone ((814) 333- 2488), email, or through our social media accounts (Facebook, Twitter, LinkedIn), and learn more about our services.