| Some people think that they can neglect tax and IRS | | | | granting you extra time for paying the taxes. About |
| will not notice it as there are so many taxpayers. But | | | | 90% of the total tax you owe to the IRS must be |
| this is not true. IRS monitors the transactions made by | | | | settled. Otherwise you will have to pay a 0.5% penalty. |
| different persons and organizations. So, if you don't a | | | | If you do not have the full amount to be paid then you |
| tax return the IRS will find you and will charge you with | | | | can pay a part of the tax. In this way the amount to |
| penalties and interest. So, it is better to pay your tax at | | | | be paid as the penalty can be reduced. If you delay |
| the right time to avoid penalties. Different types of | | | | the payment then you will have to pay more money |
| penalties are imposed on a person depending on the | | | | as tax. So, pay the remaining amount as soon as |
| situation and charges. IRS considers non-payment of | | | | possible. If you did not pay the tax for a long time and |
| tax as an act of stealing money from the government. | | | | don't take actions in response to the IRS notices and |
| Three types of penalties imposed by the IRS include | | | | threats, then the IRS will be forced to take the next |
| penalties for late tax filing, penalties for not filing your | | | | step like levying bank accounts, property attachment |
| taxes at all and penalties for non-payment of your | | | | etc. If the IRS finds that you have cheated them then |
| taxes. The penalty will be less if it is due to late filing of | | | | they may take stronger actions like imprisonment. If |
| taxes. In this case, you will be charged with a 5% | | | | you have got any tax problems then contact IRS |
| extra monthly payment. But if you fail to pay this also | | | | immediately and make an agreement for paying the |
| then the percentage will increase. So, it is better to file | | | | tax. Different payment options are available to the |
| the taxes as early as possible. In case you have got | | | | taxpayer like installment plans, Offer in Compromise |
| some genuine excuses then you can ask for some | | | | and much more. |
| extension from the IRS. But the IRS must feel that the | | | | Just know that even if you cannot pay the taxes |
| reason is good. For that, you must provide some | | | | owed for your tax return, it is still best for you to go |
| supplementary evidence like documentary proofs. In | | | | ahead and file the return anyways because the |
| order to apply for extension, you must fill the Form | | | | consequences for not paying will be much less than |
| 4868. If you want more time then you must use the | | | | not filing. If you are having trouble paying, you can |
| form 2688. Failure to file a request will result in a 5% | | | | always use the help of a tax professional and they |
| penalty. | | | | can help you settle for less or setup a manageable |
| If you make a request, it does not mean that they are | | | | payment plan for you. |