Paying Up (and a few other last-minute reminders)
It’s officially the 11th hour. Do you know where your 2014 personal income tax return is?
Chances are you’ve already given us your information and your return has been filed (way to go!) or will soon be ready for your signature (hurrah!).
But if you’re struggling a little this year, don’t worry. Here are some last-minute tips you may find helpful.
There’s still time to ask the IRS for an extension if you’re sure you won’t be able to file by April 15. You will need to pay estimated taxes in order to avoid penalties, but an extension gives you extra time to get all your documentation in order.
The IRS now offers several payment options in the event that you owe.
- You can pay directly from your checking or savings account with no added fee. All details are available at www.irs.gov.
- You can opt for an electronic funds transfer, which you can set up at www.eftps.gov or by calling 800.555.4477.
- Debit and credit card payments are accepted, too. To take advantage of this option, you will work with a payment processor and pay either a flat fee for debit transactions or a percentage of the total for credit card payments. Here are processors you can choose from:
If you can’t pay in full right now, there are a few options open to you.
- You can request a short-term extension for you via the Online Payment Agreement at www.irs.gov.
- You can set up an installment agreement by filing a Form 9465 with the IRS. Usually, the agency will inform you of their decision within 30 days. If your agreement is approved, you will pay a $52 fee if you opt for direct debit, a $120 fee for standard payments or payroll deductions, or $43 if you meet certain income guidelines. Late payments will place you in default – so it’s wise to consider the direct debit method to make sure all payments reach the IRS on time.
- An Offer in Compromise allows you to settle your tax bill for less than what you owe. The option works for very few taxpayers, but depending on your circumstances, it might help you. Please schedule an appointment to discuss this with us if you’d like to learn more.
More questions? We’re here to help. Since it’s definitely crunch time around here, we ask that you Contact Barb to let us know what you need. We’ll get back to you just as quickly as we can.
Thanks for your trust in us. We appreciate the opportunity to serve you!