Your taxes are due this week and if you haven’t filed yet, you want to make a move soon to avoid having to pay more money. We’re stretching your dollar with what you need to know.
There are a lot of reasons you maybe haven’t filed your taxes yet but if the money you owe is deterring you, remember you’ll have to pay more if you do nothing.
You’ll be subject to a “.5% Failure To Pay” penalty on the tax not paid by the due date. That will be a recurring charge each month.
If you’re considering paying on a credit card, experts say only do that if your credit card interest rate and transaction fees are less than the IRS’s rates, which is 5% right now.
Now if you haven’t filed because you’re too cash-strapped to hire a professional right now, there are options. The IRS has a resource hub where you can find ways to file or extend for free. You can also buy software from the store which is a fraction of the cost of a preparer and do it yourself or have someone help you with it that way.
It’s important you don’t let the deadline come and go without doing anything, If you do negotiate a payment plan of some kind, there are usually two options – a short-term plan where you have 120 days to pay or a long-term plan that can be up to 72 months.
It’s just important you contact the IRS and get some kind of a plan moving.