When people owe money to the IRS, they may wonder if they should pay their IRS liability in full.  It is important to remember when filing and paying taxes is that your return must be filed by the appropriate deadline, even if you can’t pay. Many people think that if they don’t file, they won’t have to pay everything, or they won’t have to pay right away, because they will stay under the radar. However, even if you aren’t caught right away, when the IRS does eventually notice these unpaid taxes, you will likely incur very high fees. These fees will make it even more difficult for you to pay your taxes, therefore, it is always best to deal with the situation promptly.

The consequences for not paying your taxes can be harsh, so you should do everything in your power to avoid them. If you don’t file, the IRS will calculate your income for you. This will likely mean that you won’t get the same number of deductions that you would if you filed properly, and you will owe even more. If you don’t file your taxes, you will also incur penalty fees that can stack up drastically over time, adding up to thousands of dollars in the worst case scenario. You’ll also be responsible for paying interest on your taxes, which will add up over time as well.

Before doing anything else, it is important to double check your returns and make sure all of the numbers are correct. It may help to consult a tax professional while doing this. They can often identify additional deductions that you have missed, and they can also inform you of tax code and regulations that you may not have been previously aware of. They may also be able to ease your mind if you are struggling to pay your taxes in full. The IRS offers many different ways to pay your taxes that can make the situation more manageable.

You can pay your taxes online or over the phone with a credit or debit card. You should always pay off as much of your taxes as you can by the deadline to avoid fees. If you have a low interest credit card, it may be a good choice for you to pay your taxes online with a credit card and then pay them off over time on the schedule of your credit card. This way, you will not incur any fees from the IRS, which can add a significant amount to your total amount owed. However, do keep in mind that most debit and credit providers charge a small convenience fee to use these accounts to pay your taxes. This fee is usually just under $4.

If you are temporarily unable to pay your taxes but will be able to shortly, you can request that the IRS give you extra time. You will be given between 60 and 120 more days to to pay your taxes, depending on your situation. To request this short extension, you can fill out an Online Payment Agreement on the IRS website. If you can, you should go for this option instead of a longer installment payment plan. This is because the IRS will charge you much less in late fees and penalties over time, and you will also avoid the very costly fees that can come with neglecting to pay your taxes completely.

However, not everyone can pay their taxes off completely in four months. In this case, you can contact the IRS and ask for a longer extension, which will allow you to pay off the debt that you owe in full using an installment payment plan. If you owe less than $25,000 in taxes, you can self-qualify for this plan using an Online Payment Agreement. This is very quick and easy to do, and does not require any evaluation by the IRS – your payment plan will be set up automatically. If you have more than $25,000 in tax debt, you can submit a financial statement to the IRS, who will then evaluate your situation and determine a suitable payment plan for you. This can be done via the IRS website’s page for tax payment options.

No matter what, you should never neglect your taxes. The longer you wait to pay them, the more you will incur in fees and penalties, which can be very harmful to your financial state over time. Although you may not be able to pay the full amount you owe right away, it is very important to at least set up a payment plan with the IRS so that you can pay it off when you can. By eliminating your tax debt, you will be able to focus on other financial matters that are important to you.

If you owe the IRS money and need help, contact us or visit Abbo Tax CPA