Did you file for your tax returns on time and still received a mail from the IRS to pay the due amounts? Yes, the news is spreading like wildfire and the defaulters are many.
We know that you need some quick and sound tax advice to save yourself from the hefty tax penalties and interest that must already be giving you insomnia. With the tax deadline already long passed and the penalties for non-payment of taxes just about to kick in, now is the time to face the devil and be in the good books of the IRS.
If you have filed your returns on time but were not able to make the full tax payment, then this is your chance to do so. The IRS has opened so many payment options which will make it easy for you to clear your tax dues and save yourself from dreadful tax penalties and interest payments.
All the defaulters who couldn’t clear all their tax dues are receiving notices including CP14 and CP501 which are notifications of due tax balance and are frequently mailed by the IRS in June and July to the tax defaulter so that they pay as soon as possible and as much as possible.
This article will give you a thorough understanding of the various modes and options of payment available to you.
Your Quick Payment Options
1. Don’t get in the queue to clear your tax dues. Electronic payment options are the best way to be done with this in no time.
2. IRS Direct Pay is another great option to pay from your checking or savings account because it does not involve any extra processing charges.
3. Use the IRS2Go App for a mobile-friendly payment option using Direct Pay or Card Payment.
4. You can pay through the tax software through which you filed your returns or can ask your tax prepper to do so.
5. You can also enrol for the Electronic Federal Tax Payment System which works on EFTPS Voice Record System, using the internet or your phone.
6. Last but not the least, if you are comfortable paying a processing fee then you can clear your tax dues by your debit or credit card.
So many options and just one click away. Short of time? Approach us, and we will help you clear your tax dues in no time.
Have a tight budget and need some relaxation? Sign up for the Online Payment Agreement.
If for some reason, you are running short of money to pay your tax dues right away, then you may use the Online Payment Agreement option. This feature can help you set up a monthly payment plan which can divide your tax dues in instalments in a matter of minutes. If you owe $55,000 or less combining your income tax, interests, and penalties, then most likely you will qualify to use this feature and can get an extension on your tax dues.
Another way out, if you don’t qualify for the Online Payment Agreement, is to get a bank loan which will charge you less interest when compared to the combination of interests and penalties that the IRS will charge you for the delay.
You can establish an online tax payment plan during the following eastern timelines.
1. Monday — Friday: 6:00 a.m. to 12:30 a.m.
2. Saturday: 6:00 a.m. to 10:00 p.m.
3. Sunday: 6:00 p.m. till Midnight
Use Automated Payment Options for the next year?
Automated payment options are an excellent way to avoid tax default and their consequences. Use the direct debit from bank account or payroll deductions to pay your taxes in full and on time without having to remember the due dates and save yourself shocking tax penalties and interest, because of defaulting on your taxes. This will also save you from postage costs, but you may have to pay the user fee if you do not belong to the low-income group.
The IRS may pause your tax collection? Sounds like a new phenomenon. Find out!
The IRS may delay your tax collection if they determine you are genuinely not in the right financial state to pay your taxes. And you may receive this benefit until your financial condition improves.
The IRS may settle for a lesser tax due through the Compromise program.
If you are struggling to pay your taxes because of some unforeseen financial constraints or otherwise, then the Compromise Program can be your saviour. Under this program, struggling taxpayers are allowed to pay a lesser amount of tax dues by getting a partial exemption from the full amount.
This scheme may also include some user fee for individuals not belonging to the low-income group. Check if you are eligible for this scheme by using the online Offer in Compromise Pre-Qualifier Tool on IRS website.
Check your Tax Withholding to avoid the unnecessary tax burden
Tax Withholdings are the part of an employee’s income that the employer withholds for tax purposes. If you hadn’t double checked it this year, then set a reminder to do so while filing your 2019 tax returns and save yourself from unnecessary tax burden by using your tax withholdings.
Improve your online fluency
A little bit of sound tax knowledge can be of great help to take conscious tax decisions. Make use of the various online tools and resources available to check your due tax amount, payment history, essential information about the current tax return, which was initially filed and many more. This will help you plan your tax payments in a timely manner going forward and will help you save big time on penalties, interest and the like.
If you are yet to pay your taxes make sure to sign up for one of IRS’s plethora of payment options meant for this purpose. This will help ease your burden.
For more such tax news and updates, stay tuned with MyTaxFiler. We also provide a one-stop solution for all your tax-related woes. Simply drop a mail at email@example.com or call us at (888)-482–0279 for an on-call consultation