IRS Tax Tips
April 6, 2006 – AT-2006-68
If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. There are also alternative payment options to consider:
Pay by Credit Card - You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. To pay by credit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. The service providers charge a convenience fee based on the amount you are paying. Do not add the convenience fee to your tax payment.
- Link2Gov Corporation: 1-888-PAY-1040 (1-888-729-1040), www.pay1040.com
- Official Payments Corporation: 1-800-2PAY-TAX (1-800-272-9829), www.officialpayments.com
- Extension of time to Pay - Based on the circumstances, a taxpayer could qualify for an extension of time to pay. The IRS is willing to offer extensions of time to pay in order to assist in tax debt repayment. A taxpayer can request an extension from 30 - 120 days depending on the specific situation. Penalties and interest incurred will be less through an extension of time to pay rather than seeking to enter into an installment agreement. Taxpayers qualifying for an extension of time to pay of 30 -120 days generally will pay less in penalties and interest than if the debt were repaid through an installment agreement.
- Installment Agreement - The IRS may allow you to pay any remaining balance in monthly installments through an installment agreement. To apply for an installment payment plan, attach a Form 9465, Installment Agreement Request, to the front of your tax return. Be sure to show the amount of your proposed monthly payment and the date you wish to make your payment each month. The IRS charges a $43 fee for setting up an installment agreement. You will also be required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month, after the due date that the tax is not paid. If you do not file your return by the due date -- including extensions -- you may have to pay a failure-to-file penalty.
For more information about filing and paying your taxes, refer to the Form 1040 Instructions or IRS Publication 17, Your Federal Income Tax.