WASHINGTON — The Internal Revenue Service
today reminded 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.
There are also alternative payment options to
consider:
- Request an Extension of Time to Pay — Based on the circumstances,
a taxpayer could qualify for an extension of time to pay. 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. Taxpayers
qualifying for an extension of time to pay of 30 to 120 days
generally will pay less in penalties and interest than if the
debt were repaid through an installment agreement. Taxpayers
can request an extension of time to pay using the Online Payment
Agreement option available on thisWeb site.
- 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, using the
Online Payment Agreement application. Alternatively, taxpayers
may 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 (for more information,
see Form 13844). Taxpayers are required to pay interest plus
a late payment penalty on the unpaid taxes for each month or
part of a month, after the due date that the tax is not paid.
A taxpayer who does not file the return by the due date —
including extensions — may have to pay a failure-to-file
penalty.
- Pay by Credit Card — Taxpayers can charge taxes on their
American Express, MasterCard, Visa or Discover cards. To pay
by credit card, taxpayers should contact one of the service
providers at its telephone number or Web site listed below and
follow the instructions. The service providers charge a convenience
fee based on the amount of tax the taxpayer is paying. Taxpayers
should not add the convenience fee to their tax payment.
For more information about filing and paying
your taxes, choose “1040 Central” on this Web site or
refer to the Form 1040 Instructions or IRS Publication 17, Your
Federal Income Tax. Taxpayers can download forms and publications
from this Web site or request a free copy by calling toll free
800-TAX-FORM (800-829-3676).
Credit:http://www.irs.gov/newsroom/article/0,,id=169438,00.html
IRS Newswire
IR-2007-85, April 12, 2007
Subscribe to the IRS Newswire to get news releases via e-mail
from the IRS National Media Relations Office in Washington, DC.
We issue, on average, two to three news releases each week. Topics
cover the entire range of tax administration, including tax law
changes, filing season updates, statistics and more.
Related
Information:
NBA
Strategic Partner - Internal
Revenue Service Taxpayer Advocate Service
NBA
Resource Article - IRS Encourages
Taxpayers to Take Advantage of Overlooked Tax Benefits
NBA
Resource Article - 2007
Inflation Adjustments Widen Tax Brackets, Expand Tax Benefits
Reprint
of this article does not constitute an endorsement by the National
Business Association; the article is for informational purposes
for our members and viewers of our Web site.
|
| |
