Filing Tax Returns Late or Paying Tax Returns Late

Filing Tax Returns Late or Paying Tax Returns Late

Which is the lessor of these two issues?

In this economy, it is not impossible to believe that small business owners or individual tax payers may have a hard time paying or completing their respective tax returns. There are options available for taxpayers who need assistance in preparing or paying their taxes.

Filing Late or not Filing

It is always in your best interest to file your taxes timely. If you cant file timely, prepare an extension to allow yourself additional time to prepare your returns. However, your tax (Money0 is due on the original due date either March 15th or April 15th depending on whether you are a corporation or a partnership.

If your return is late, and you have not filed; You should do so as soon as possible to avoid additional interests and penalties.

Paying Your Taxes

There are multiple options available to pay your taxes these days. From credit cards, to check, to the IRS's EFTPS (Electronic Funds Transfer Payment System). If you cannot pay your complete tax bill on time, you should pay as much as possible as soon as possible to reduce the amount of interest and penalties that will accrue.
Based on the circumstances, a taxpayer could qualify for an extension of time to pay, an Installment Agreement, temporary delay, or Offer in Compromise from the IRS. You must meet specific reasons and follow the appropriate procedures in order to qualify.

Keep in mind that with low borrowing rates, it may be cheaper to borrow the money to pay your taxes from a creditor rather than going on a n installment agreement with the IRS.