Can’t Pay Your 2020 Tax Bill? If you are among those American taxpayers who are not able to file their returns to the IRS this year, follow the guide provided by the IRS itself in such cases. Each year, many Americans get a refund from the IRS, but some are those who owe taxes because of a larger tax bill. Most important and common things to know when you can’t pay your 2020 taxes to the IRS are discussed below:
How Do I Pay When I File Taxes?
The payment options for taxes depend on whether the taxpayer is filing online or through the mail. Online tax filing involves payment via electronic withdrawal or credit cards. If the taxpayers choose the option to file taxes via mail, then check or money order can be used for this purpose. Black Ink provides the IRS-recommended e-filing of returns throughout USA that saves time and money and also guarantees fastest refund via Direct Deposit within 21 days.
Do I Have To Pay My Taxes When I File?
If you can’t pay the full amount of your tax bill, you should still file your tax return before the deadline. In order to avoid penalties and interest, you should pay as much amount as you can, if you want afford the full amount of taxes you owe. The IRS also provides different flexible and relief options for tax payments if you can’t afford, which include short-term extension to pay, an installment agreement or an offer in compromise, or by temporarily delaying collection process. There are certain cases where the IRS waives penalties but the interest charges acquired on the unpaid tax bills can’t be waived.
What If I Can’t Pay When I File?
Taxpayers always do a mistake that if they can’t pay their taxes, they don’t even file them. It is very important to understand that all taxpayers are required to file return even if they can’t pay their tax amount on time. Filing the return on time can save taxpayers from late filing penalties.
What Are IRS Tax Payment Options If I Can’t Pay My Tax?
IRS provides several tax payment options to facilitate those taxpayers who are not able to pay 2020 taxes when they are filing returns. Contact Black Ink to file your taxes on time even if you cannot pay your tax bill this year. We can help you from the given options of IRS tax payment plans in avoiding penalties.
1. IRS Short-Term Payment Plan:
Taxpayers can apply for Short-term payment plan if they can pay their bill in full in less than 120 days. With this plan, monthly automatic payments can be paid.
2. IRS Long-Term Payment Plan- Installment Agreement # 01:
Taxpayers can apply for Long-term payment plan if they need more than 120 days to pay their complete tax amount through direct debit (automatic monthly payments from their checking account).
3. IRS Long-Term Payment Plan- Installment Agreement # 02:
Installment agreement # 02 of the IRS Long-term payment plan is similar as that of the agreement # 01, except that it includes multiple payment options. The examples of payment options cover monthly payment via check, money order, or debit/credit card, Direct Pay (from a checking or savings account) or online e-payment using Electronic Federal Tax Payment System (EFTPS).
Can I Change An Existing Payment Plan?
Yes, you can change your existing IRS tax payment plan if your current plan is not working in your favor. You can change or revise your payment plan via online support or by calling, mailing or meeting in person with IRS representative.
Can I Reinstate An Installment Agreement With The IRS?
Yes, you can reinstate a payment plan. To use your same plan again for the current tax year, request can be sent either online or by phone, mail, or in person.
What is Offer-In-Compromise (OIC)?
The IRS also facilitates the taxpayers to settle their tax bill for less than the full amount they owe. The procedure is known as Offer in Compromise and it can be availed if the taxpayers meet certain specific IRS guidelines. Book an appointment with us to know whether you qualify for Offer in Compromise or what is an appropriate offer in compromise with IRS?
What is First Time Penalty Abatement?
The IRS can waive your failure-to-file and failure-to-pay penalties, if you meet the eligibility criteria. To request a first time penalty abatement from the IRS, you can take Black Ink’s professional assistance.
What Happens If I Don’t Pay My Taxes?
If you do not or never pay your taxes, fines and penalties are waiting for you. It is necessary to pay your tax bill before the deadline to avoid incurring penalties and fees that usually begin right after the day you fail to pay your tax bill. Federal tax lien, summons serving, salary/accounts seizing, etc are some of the common consequences of penalties. Therefore, file & pay your taxes before the 2020 tax deadlines in USA.
The taxpayers can also get a refund even if they do not file or pay taxes to the IRS. Can is get refund if I don’t file or pay taxes is solved in our latest post. Be a part of our News Section that brings all the latest happenings in the IRS taxation department of the United States. So that was all you needed to know if you Can’t Pay Your 2020 Tax Bill.