6 Tips to Pay Your Tax Bill This Summer

Summer has been in full swing for a while now, and it’s really going full speed ahead. Can you believe that there are only eight weeks of summer left? That’s just two really short months. If you filed any of the following extensions during your tax season, then you have these upcoming deadlines:

• Exempt Organizations Extension Form 8868 – Tax deadline is August 15, or November 15 for those who are filing Part II.
• Personal Tax Extension Form 4868 – Tax deadline is October 15.
• Business Tax Extension Form 7004 – Tax deadline is September 15.

Of course, by filing these extensions, you still have to pay your estimated taxes. Remember, tax extensions only extend the time you need to file a return – not time needed to pay your taxes. Summer is a great season and everything, but don’t get too sidetracked with “fun in the sun” and forget about paying your taxes. With only a couple months left in the season, here are six tips to pay your tax bill this summer, brought to you by the IRS.

1. Reply Promptly – It’s typical for the IRS to send out a bunch of notifications after tax season. Be sure that you carefully read it and follow the instructions. If you owe, the notice will say so along with your due date. To avoid additional fees and penalties, you should promptly respond to the notice and pay your bill.

2. Pay Online – The IRS has a variety of electronic payment methods that allow you pay your taxes quickly, accurately, and safely. You also get a record of your payment. These options include

• IRS Direct Pay
• Electronic Federal Tax Payment System (EFTPS)
• Credit or Debit Card

Direct Pay and EFTPS are free services; however, if you pay by credit or debit card, you’ll be charged a fee from the payment processing company.

3. Apply Online to Make Payments – You can apply for an installment agreement if you’re struggling to pay your tax in full. Simply fill out the Online Payment Agreement Application, or you can apply in writing by filing a Form 9465. Both are available at IRS.gov to download or print.

4. Use a Direct Debit Plan – A low-cost, hassle-free way to pay is with a direct debit installment plan. Your direct debit set-up fee will be $52, which is less than half of the $120 fee for other payment plans. With the direct debit plan, you can automatically pay from your bank account on a day that you can set up each month.

You’ll no longer have to write a check or use “snail-mail” to send a payment. You’ll also won’t have to deal with reminder notices or, most importantly, any missed payments. For more information, check out Payment Plans, Installment Agreements.

5. Pay By Check or Money Order – You can make your check or money order payable to the U.S. Treasury. Be sure you include your:

• Name, Address, and Daytime Phone Number
• Social Security Number or Employer ID Number for Business Taxes
• Tax Period and Related Tax Form (eg. “2014 Form 1040”)

Mail your payment to the address that’s listed on your notice, and don’t send any cash in the mail.

6. Consider an Offer in Compromise – With an Offer in Compromise (OIC), you may be able to pay your tax debt for less than you actually owe. OIC options are available if you can’t pay your tax in full, or if full payment creates a financial hardship for you. Everyone won’t qualify, so be sure you check out the other forms of payment before attempting an OIC.

To see if you’re eligible, you can use the Offer in Compromise Pre-Qualifier tool provided by the IRS.

The Autumn season will quickly be upon us. Why not welcome it by having a good deal of your taxes paid off?

If you’re operating on a fiscal tax year, and still need to file an extension, e-file today with ExpressExtension. As an authorized IRS e-file provider, ExpressExtension supports a safe, secure, and accurate e-filing process with the most experienced technical and help teams in the industry.

And you can also pay your estimated tax at the same time you e-file your tax extension with ExpressExtension; payment is accepted online by Electronic Funds Withdrawal (EFW) using your checking or savings account information.

Live professionals are available at our Rock Hill, South Carolina office. Feel free to contact our expert help at (803) 514-5155, Monday through Friday from 9am to 6pm EST. You can also either e-mail us at [email protected] or chat with us at www.expressextensions.com for any further assistance e-filing your extension forms.