With the federal income tax filing deadline looming (it is on April 18 this year, by the way), it is normal for those who are not expecting a refund to be worried about meeting this deadline. Indeed, some see it as the end of the world while others would rather have a colonoscopy than to complete their tax forms. Because of the stress and trepidation associated with owing money, the tax filing deadline day is arguably one of the most stressful days of the year.
If you end up owing money, don’t worry. There are several options available to you, and this post will highlight a few of them.
Ask for an extension – If you can’t pay your tax bill in full right away, you are certainly not alone. An extra few months to pay your tax bill could be just the thing to make things right. If this fits your situation, an extension is a good option for you.
Ask for a payment plan – If some extra time (usually 90 days) is not enough time to pay your tax debt, establishing a payment plan is also an option. Payment plans can be as short as 12 months or as long as 60 months. As long as your remain current on your plan, the government should not have an issue.
Agree to an Offer in Compromise – If there is a dispute over outstanding tax debt, you and the government could reach an agreement to where you pay less than the stated amount owed.
If you have questions about payment options, an experienced tax attorney can advise you.