subject: When You Are In Need Of A Tax Extension [print this page] When You Are In Need Of A Tax Extension
There are actually options, if you don't have the money to pay right away. Both you and the IRS have an interest in finding a suitable solution, so a compromise can surely be found. Next, are ten things to know if you require a tax extension in order to pay your debt.
1. You are encouraged to pay as much as you can, this will reduce penalties and interest incurred.
2. Depending on the specific circumstances, you might be entitled to a temporary delay, an installment agreement or an Offer in Compromise.
3. As soon as possible, contact IRS by using the contact information provided on the bill.
4. Financing your tax can sometimes be done through a loan by a credit card company or a bank, which might lead to lower costs for you.
5. If you only need a little extra time, up to 120 days can be given without any fee, minimizing the cost.
6. Another option is a installment agreement. After a one-time fee of either $43, $52 or $105, depending on how you pay and your income level, you can pay the taxes in monthly installments.
7. Applying for an installment agreement can be done though the IRS website. The application is called the Online Payment Agreement. You can also call the number provided on your bill.
8. Find out if you have a chance to receive an offer of compromise. This will settle your outstanding tax liabilities at less than the current amount owed. As a ground rule, such an agreement is only available, if the IRS consider it to be unlikely that you could pay the debt in full, via a payment agreement or in full right away.
9. When you have agreed to a payment plan, don't be surprised if the IRS files a Federal Tax Lien Notice. This is done in order to secure the interest of the government, until the debt is fully paid.
10. Maybe the most important thing to know, is that it is crucial to respond when you receive an IRS notice. If the IRS doesn't hear from you and receive no payment, they are entitled, and indeed likely, to commence collection action.
If you need further information of tax extensions, the best source of comprehensive details and facts on the collection process is found on the IRS website.
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