The Internal Revenue Service is reminding taxpayers to file their tax returns by the April 17 deadline and to pay as much as they can of any taxes they owe to minimize any accrued penalties and interest.

Among the alternative payment options to consider are:

  • Request an extension of time to pay. Based on the circumstances, the IRS is willing to allow extensions of time to pay in order to assist in tax debt repayment. A taxpayer can request an extension from 30 to 120 days depending on the specific situation. This year, taxpayers can request an extension of time to pay using the online payment agreement option at www.IRS.gov.
  • Apply for an installment agreement. The IRS may allow taxpayers to pay any remaining balance in monthly installments through an installment agreement. Taxpayers who owe $25,000 or less may apply for a payment plan electronically, or attach a Form 9465, “Installment Agreement Request,” to the front of their tax return. Taxpayers must show the amount of their proposed monthly payment and the date they wish to make their payment each month. The IRS charges a $105 fee for setting up an installment agreement. The fee is reduced to $52 for those who establish a direct debit installment agreement and $43 for those with an income below a certain level.
  • Pay by credit card. To pay by credit card, taxpayers should contact either Link2Gov Corp., at www.pay1040.com,  or, OfficialPayments Corp., at www.officialpayments.com.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access