April 9, 2011 - We're coming down to the wire. This year that's April 18 rather than April 15. If you're having difficulty paying your taxes, read on. It's very important that you file your return and pay as much as you can on the 18 - to avoid onerous penalties and interest.
Here are three payment options:
(1) Getting Additional Time to Pay
The IRS may grant you a short additional time to in which pay your taxes in full. To find out if you qualify, fill out the Online Payment Agreement application at: http://www.irs.gov/ or call 800-829-1040.
$TIP: Taxpayers who are given an additional 60 to 120 days to pay their taxes in full generally pay less in penalties and interest than if they pay using the installment agreement (see below) taking a longer period of time.
(2) Installment Agreement
You can apply for an IRS installment agreement using the application at: http://www.irs.gov/. It is designed for those who owe $25,000 or less (in combined tax, penalties and interest).
Two other options here: a) you can complete Form 9465, "Installment Agreement Request" and make your request in writing, or b) Call 800-829-1040 to make your request.
For balances over $25,000, you must complete a financial statement.
INFO: Read Tax Topic #202, "Tax Payment Options." You'll find it at: http://www.irs.gov/.
(3) Pay by Credit or Debit Card
You can charge your taxes on your American Express, MasterCard, Visa or Discover credit cards. Or pay by using your debit card.
Caution: The debit card must be a Visa Debit Card, or a NYCE, Pulse or Star Debit Card.
To pay by credit card or debit card, get in touch with one of the service providers below and then follow the instructions.
Fees... There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee or flat fee. If you are paying by debit card, there's a flat fee of $3.89 to $3.95. Note: Do not add the convenience fee or flat fee to your tax payment.
The service providers are:
For More Info: Read IRS Publication 17, "Your Federal Income Tax." You can download it at: http://www.irs.gov/.
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