- Personal Finance
How To Request For A Tax Extension On Your 2011 Taxes
If You Need to Delay Paying Your Taxes
People who owe the government some taxes will feel better to know that they have options when they cannot pay the entire amount in one go.
If you are one of those, here some things that the Internal Revenue Service needs you to know if you need to stall in paying your taxes.
1. Depending on the conditions, a taxpayer may be eligible for even an Offer in Compromise or simply extra time or a payment arrangement. It is really an arrangement involving the citizen and the government which will help settle the tax liability for a lesser amount. Normally, this arrangement will never be agreed on should the Internal Revenue Service thinks that this obligation may be fully paid whether by lump sum or installments.
2. People who cannot pay their taxes in one lump sum really should shell out as far as possible. If you are paying as far as possible when it is due, the sum of penalties and interest supposed to be paid will be significantly less.
3. If you can't give the entire sum, taxpayers ought to write the address on the bill or contact the number stated there.
4. If you fail to pay completely right away, you could possibly meet the requirements to be eligible for a tax extension for about 120 days. You do not have to pay anything for this extension.
5. If you are struggling, you could also think about borrowing money to pay your entire tax liability. The fees and interest rate billed by your credit card or your bank are generally cheaper than the penalties or interest charged by the IRS.
6. It's also possible to request that you pay through monthly installments. After you pay $105 one-time to the IRS, they will gladly allow you to get started on this program. If you allow them to do this direct debit the account you have in the bank, the reduced fee comes out as $52. For those belonging to the low-income bracket, they can pay just $43. Make sure that you fill out Form 9465 as well.This online payment application is available online on their website. You can also call them if it you are more comfortable doing so.
Make sure that you respond to the Internal Revenue service immediately to avoid further penalties on your 2011 taxes.