The Internal Revenue Service (IRS) reminds all taxpayers that the anticipated tax payment deadline for the first quarter of fiscal year 2025 is April 15, as the tax filing deadline draws near.
For those who are unable to pay their taxes in full and can provide adequate justification for not filing their complete return, the IRS provides alternatives.
The IRS website states that “taxpayers who cannot pay their taxes in full by the deadline should pay what they can now and apply for a payment plan online.”
According to the IRS, anyone can electronically request an automatic extension of time to file their taxes through the IRS’s Free File by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, regardless of their income.
Which payment plans are available?
Direct payment, credit card, debit card, and digital wallet are all forms of electronic payment. The fact that the payment relates to an extension ought to be made clear.
The following choices and alternatives for paying taxes in full are highlighted on the IRS website.
Plan for short-term payments: The total amount of taxes, penalties, and interest due is less than $100,000. Up to 180 days more time to settle the outstanding balance.
Long-term payment plan: When the total amount of taxes, penalties, and interest due is less than $50,000, taxpayers are eligible for a long-term payment plan.
Up to the collection term, which is typically ten years, taxpayers are permitted to make monthly payments.
How can I find out whether my application was approved?
Instead of needing to call or write to receive a response, those who apply online for one of these alternatives will know right away if the IRS accepts or rejects their payment plan application.
While the payment agreement is in force, the late payment penalty is halved, but interest and penalties still apply to unpaid taxes after April 15.
Source: Marca
