It’s April 15th, a date universally known as the US tax deadline. The good news is that you actually have another couple days; when the tax deadline falls on a Friday or weekend, the IRS pushes it out to the next Monday, so you have until April 18th this year to file and pay your return. But the bad news is that you have to pay those taxes on Monday too, and if you can’t afford it, it’s going to be a very stressful weekend. What can you do if you can’t afford to pay your taxes? Keep reading to learn more.
Don’t Assume an Extension Is the Answer
If you’ve heard of a tax extension, you might think you’ve found a fast and easy answer to your trouble; tax extensions are easy to get, and just about every request for an extension is approved. But a tax extension is only an extension for filing your return—it’s not an extension on paying your taxes. So, even though you’ll have more time to get all your documents together, you’re still expected to pay your full tax debt on Monday. If you filed for an extension, you still need to find a solution for the taxes you owe, or else you’ll be faced with late payment penalties, fees, and interest.
Request an Extension on Payment
We have more good news for you though: The IRS does also offer extensions on payments. Though they’re more difficult to receive than filing extensions, it’s not impossible. Also known as a short-term payment plan, this option automatically extends your payment for 180 days. This is a good option for those who can gather the funds to pay their tax debt, but simply need a bit more time do so. You can apply for short-term payment plans online for free.
Request a Long-Term Payment Plan
But what if your trouble paying off your taxes is about more than just having enough time to get your funds together? What if you genuinely can’t afford your taxes? The IRS also offer long-term payment plans that allow you to make payments in monthly installments until your debt is paid off. These plans are more difficult to qualify for than the short-term payment plans mentioned above, and they typically have a fee to apply. However, they can offer you an option to manage your debt over an extended period of time if you can’t afford to pay in a lump sum.
Most Importantly, File Your Return
We cannot stress enough the importance of filing your tax return, regardless of whether or not you can afford to pay your taxes at the time. Never assume that failing to file your return will somehow keep you “off the radar” when it comes to your tax debt. All this will do is leave you with penalties for failing to file, in addition to your penalties for failing to pay.
Additionally, we have always found that the IRS is more than willing to work with taxpayers who communicate openly and honestly about their ability to pay their taxes. This includes filing your return on time, while also reaching out and applying for a payment plan or extension, as mentioned above. And, of course, if you’re not yet prepared to file your return, you can request a filing extension in addition to a payment extension.
Get the Help You Need
Many people are facing unexpectedly high tax bills this year. This is due, at least in part, to the advanced child tax credit payments received in the latter half of 2021. Some parents may not have realized that these payments were a part of an existing tax credit, meaning they would receive a smaller credit on their tax return when filing. For some, this resulted in higher tax bills, and advanced credit payments that had already been spent. Whatever the reason though, you deserve help in settling your tax debt.
We understand that approaching a large federal entity like the IRS can be overwhelming, especially when you’re already dealing with the stress of being unable to pay your taxes. It’s also extremely important that you fill out all paperwork correctly when requesting your payment plan—especially with the deadline so close. So, if you can’t afford to pay your taxes this year, reach out to the IRS Advocates. We’ll help you through communicating with the IRS and filing the necessary paperwork to request the right payment plan for your situation. Call now to schedule a consultation, or click the link on our home page to see if you qualify for an IRS settlement plan.
Settle for less & Protect your assets
Never Call the IRS without Speaking with our Pros First!