April 15 is almost here and you’re either out of time or money if you owe federal income taxes. But even the Internal Revenue Services says not to panic.
There are options for late filers and those who can’t pay all taxes owed in a single payment. For those who haven’t paid their taxes, for whatever reason, there are also tex relief services too. You can get tax relief in Las Vegas, Connecticut, wherever you live if needed.
Tax-filing extensions are available if you need more time to complete returns. However, this is an extension of time to file — not an extension of time to pay.
Nonetheless, taxpayers who are having trouble paying what they owe may qualify for payment plans and other relief, the IRS said.
Either way, taxpayers will avoid stiff penalties if they file either a regular income tax return or a request for a tax-filing extension by this year’s April 15 deadline, which falls on Monday.
Here are the options:
Those who haven’t completed their return can get an automatic six-month extension. The easiest way is to get the extra time is through the Free File link on the IRS website. Anyone can use this free service to electronically request an automatic tax-filing extension on Form 4868.
Filing Form 4868 gives taxpayers until Oct. 15 to file a return. To get the extension, taxpayers must estimate their tax liability on this form and should also pay any amount due.
By properly filing this form, a taxpayer will avoid the late-filing penalty — about 5 percent per month based on the unpaid balance that applies to returns filed after the deadline. In addition, any payment made with an extension request will reduce or eliminate interest and late-payment penalties that apply to payments made after April 15. The current interest rate is three percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month.
More Time to Pay
Taxpayers who have completed their returns should file by the regular April 15 deadline, even if they can’t pay the full amount due. In many cases, those struggling with unpaid taxes qualify for one of several relief programs, including the following:
- Most people can set up a payment agreement with the IRS online in minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to 72 months. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. With the Online Payment Agreement, no paperwork is required, and there is no need to call, write or visit the IRS and qualified taxpayers can avoid the filing of a Notice of Federal Tax Lien if one was not previously filed. Alternatively, taxpayers can request a payment agreement by filing Form 9465. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
- Some struggling taxpayers may qualify for an offer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov.