Owe Money in Taxes? Here is How You Can Pay
diamondcpas
May 9, 2018

If you were unable to make your tax payment by April 17th, you may be nervous about what to do.  We recommend that you work with our office and stay in contact with the IRS about your options and payment plans.  It is critical that you do not ignore the situation and go into delinquency.

There are a few steps that should be taken immediately:  

  1. First, figure out your taxes.  Knowing the numbers will give you a realistic picture to work with and it might not be as bad as you think.   
  2. File as soon as possible to avoid “failure to file” penalties.
  3. Contact the IRS to let them know you want to discuss payment options.  
  4. Pay as much as you can to avoid interest and penalties.
  5. Stay current with a payment plan.

What happens if you choose to do nothing?  After all, it took them years to catch Capone, right?  

Capone was not avoiding taxes in the age of computers. If your employer or client filed a W-2 or a 1099 under your taxpayer ID, there is a digital trail that can easily be detected.  

As highlighted in a recent USA Today article, here are a few options for a family who would have owed $2,000 in taxes had they paid by the April 17th due date:  

  1. File now, pay by October 15:  Total tax bill, $2,100.
  2. Do nothing – don’t file a return, don’t file an extension, don’t pay any taxes until October 15:  Total tax bill, $2,560. This is due to “failure to file” and “failure to pay” penalties and interest.  

We can help you with the following:

  1. File your tax returns or extensions.
  2. Determine which payment options are best for you.
  3. Depending on the amount of your tax debt, we are available to help with an installment agreement or an offer in compromise.

To avoid the highest level of fees, it is important that you come into our office as soon as possible to discuss your options.  

 

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