If you don’t have enough money to pay your entire tax bill, here are 5 helpful tips from the IRS
- Pay as much as you can to minimize interest and penalties
- Get a loan or pay with a credit card (fees are usually lower than what the IRS charges)
- You might be able to get a no-fee payment arrangement to extend the time you have to pay (up to four months). Call the IRS at 1-800-829-1040 if you’re able to pay in full within 120 days
- See if you qualify for an installment agreement
- Respond to any IRS notices you receive
IMPORTANT: If you file an extension on Form 7004 (for business taxes) or Form 4868 (for individual taxes), it’s only an extension of the deadline for filing your tax return. It does nothing to extend the time that your taxes are due. If you don’t pay your total bill or make alternative arrangements, the IRS will turn your case over to its collection department.
For more information, visit this page on the IRS web site.
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