Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
This morning, I talked about what happens if you file your taxes late. The short version is that you’ll face penalties that are more severe than if you had file your return (or request an extension) on time, but fail to include payment for the amount due.
Okay, but what if you can’t afford to pay the amount due? As it turns out, the IRS allows for what they call an “Installment Agreement,” which is basically a payment plan that lets you pay what’s due in smaller, more manageable increments.
If you owe $25k or less…
If you owe $25k or less, you can us the Online Payment Agreement (OPA) to set up your payment plan. Alternatively, you can use Form 9465. If you’ve already received a bill from the IRS, you also have the option of calling the number on the bill.
If you owe more than $25k…
If you’re in the unfortunate situation of owning more than $25k, you may still qualify for an Installment Agreement, though you might have to fill out Form 433F in addition to using the OPA or filing Form 9465.
Either way, it’s best to pay now…
Even if you set up a payment plan, you’ll still face penalties and interest for your underpayment, so it’s best to pay your taxes when they’re due – if at all possible. But if not, then be sure you jump through the proper hoops to keep yourself out of trouble. You don’t want to anger the IRS.
(More info on Installment Agreements from IRS.gov: link)
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (534)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (325)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (227)
- Will Mac OS X Lion Kill Quicken 2007? (191)