Tax Tip: Missed the April tax-filing deadline? File quickly to avoid penalties and interest; those owed a refund also shouldn’t forget to files:
WASHINGTON — The Internal Revenue Service today encouraged taxpayers who missed the April tax-filing deadline to file a tax return as soon as they can.
The IRS offers different resources to help those who may be unable to pay their tax bill in total. Those who missed the deadline to file but owe taxes should file quickly to minimize penalties and interest.
Taxpayers should keep in mind that payments are still due by the April 15 deadline, even if they requested an extension of time to file a tax return. An extension to file is not an extension to pay.
File and pay amount owed to reduce penalties and interest
Taxpayers who still owe taxes should file their tax return and pay any taxes owed quickly to reduce penalties and interest. Until the balance is paid in full, interest and penalties accrue on taxes owed.
Even if a taxpayer can't afford to immediately pay the full amount of taxes owed, they should still file a tax return and pay as much as possible. This reduces interest and penalties on the outstanding amount and may help avoid a possible late-filing penalty.
There are options for taxpayers who owe the IRS but cannot afford to pay. For more information see the penalties page on IRS.gov.
Taxpayers may qualify for penalty relief if they have filed and paid timely for the past three years and meet other important requirements, including paying or arranging to pay any tax due. For more information, see the first-time penalty abatement page on IRS.gov.
Electronically pay taxes owed
A quick, easy way for individuals to pay taxes owed securely is through IRS Direct Pay, debit or credit card or digital wallet, or their IRS Online Account. Taxpayers may also apply online for a payment plan (including an installment agreement).
Those who pay electronically get immediate confirmation after submitting payment. The Electronic Federal Tax Payment System (EFTPS) and Direct Pay allow taxpayers to receive payment email notifications. Find more payment options on IRS.gov/payments.
Some taxpayers automatically qualify for extra time to file and pay taxes due without penalties and interest, including:
• Taxpayers in certain disaster areas. There’s no need for these taxpayers to submit an extension; extra time is granted automatically due to the disaster. Information on the most recent tax relief for disaster situations is available on the IRS website.
• U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico get an automatic two-month extension to file their tax returns. This year they have until June 17 to file. However, tax payments are still due April 15 or interest will be charged.
• Members of the military on duty outside the United States and Puerto Rico. Details are available in Publication 3, Armed Forces’ Tax Guide.
• Those serving in combat zones have up to 180 days after they leave the combat zone to file returns and pay any taxes due.
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Tax Tips: IRS offers several payment options, including help for those struggling to pay
Taxpayers have a variety of options to consider when paying federal taxes. Electronic payment options are the best way to make a tax payment.
For taxpayers who cannot pay in full, the IRS encourages them to pay what they can and explore a variety of payment options available for the remaining balance, including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge by law.
The IRS also urges taxpayers not to wait to respond to a notice. Notices and letters provide taxpayers with information about the actions they need to take. Many notices have QR codes that help direct taxpayers to their online tax accounts. In addition, these letters inform the taxpayer of the status of their unpaid balance, options for resolution and their rights in the collection process.
For taxpayers who can't pay their tax bill in full, the IRS offers several options to help them meet their obligations. IRS payment options are available at IRS.gov/payments.
Options for paying electronically
• Direct Pay – Individual taxpayers can use Direct Pay for up to two payments each day. Direct Pay lets taxpayers pay online directly from a checking or savings account for free and schedule payments up to 365 days in advance. They'll receive an email confirmation of their payments.
• Electronic Federal Tax Payment System (EFTPS) – The best payment option for individual taxpayers or businesses making large payments is the EFTPS, which allows up to five payments per day. The system requires enrollment. Taxpayers can schedule payments up to 365 days in advance and opt in to receive email notifications about their payments.
• Electronic funds withdrawal – Individual taxpayers and businesses can pay when they file electronically using tax software online. If they're using a tax preparer, they can ask the preparer to make the tax payment through an electronic funds withdrawal from a bank account.
• Payment processor – Individual taxpayers and businesses can choose to pay with a credit card, debit card or digital wallet through a payment processor. Although processing fees apply, no part of those go to the IRS.
• IRS Online Account – Individual taxpayers have the option to create and sign into an IRS Online Account to pay from there. Online Account allows taxpayers to view:
o The amount they owe.
o Payment history and any scheduled or pending payments.
o Payment plan details.
o Digital copies of select notices from the IRS.
Paying by check, money order or cashier's check
If they’re paying an income tax liability that's currently due without an accompanying income tax return, taxpayers paying by check, money order or cashier's check should include Form 1040-V, Payment Voucher, with the payment.
• Mail the payment to the correct address by state or form. Don't send cash through the mail. Indicate on the check memo line the specific tax year to which the IRS should apply the payment.
• Those paying when filing their current year's income tax return shouldn't staple or paperclip the payment to the return. For more information go to Pay by Check or Money Order on IRS.gov.
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