You may have gotten your tax extension e-filed on time, but that doesn’t mean you should take things too easy – especially if you owe the IRS money. The biggest mistake taxpayers make with extension forms is thinking it extends everything regarding their taxes.
The truth is that extension forms can only prolong the time to file your actual tax return – nothing more, nothing less.
If you have any tax liabilities, you must pay your tax bill before the original IRS deadline. For those of you who haven’t paid yet, here are six easy ways from the IRS to settle your bill.
Reply to the IRS
The IRS typically sends out postal notifications if you happen to owe them money – you should read it carefully and follow its instructions. If the IRS needs you to respond verbally to the notice, the letter will explicitly say so. If you believe that the notice is an error, you have the right to contact them about it. Under normal circumstances, you file the notice in your records and proceed to pay your tax bill.
Pay Taxes Online
There are various electronic payment methods, which you can pay your taxes quickly, accurately, and securely with the IRS – you’ll also receive a payment receipt. These methods include
Important: You can use the IRS Direct Pay and EFTPS for free; however, there are processing fees involved with using credit or debit cards for payment.
Apply for a Payment Plan
If you can’t pay your tax bill all at once, then consider applying for an installment agreement. You can either submit an Online Payment Agreement Application or file IRS Form 9465 – both are available for download or print at the IRS website.
Create a Direct Debit Plan
One of those installment agreements includes a low-cost direct debit plan. With this type of contract, you can set up a day each month to automatically pay the IRS directly from your bank account. It’s cost about $52 to set up the plan, but it gets rid of continuous reminders and prevents missed payments.
Pay Physically by Check or Money Order
You can write a check or money order payable to the U.S. Treasury – make sure to include the following information:
- Name, Address, and Daytime Phone Number
- Social Security Number or Employer ID Number
- Tax Period and Related Tax Form (e.g., “2015 Form 1040”)
Send your payment to the address listed on your notice – do not send any cash through the mail.
Get an Offer in Compromise
If paying your tax bill in full creates an additional financial hardship, you may be eligible for an Offer in Compromise (OIC), which allows you to pay the IRS less than what you owe. Not everyone will qualify, but you can use the Offer in Compromise Pre-Qualifier Tool to see if you meet requirements.
As Summer begins to come to close, why not end the season with the IRS paid in full? With ExpressExtension.com, you can even use our Electronic Funds Withdrawal (EFW) option to pay estimated taxes with your checking or savings account information.
Our U.S. – based, e-file professionals are available for any questions or assistance with tax extensions. Give us a call at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or email us with [email protected].