The Ultimate Guide for Clearing Your Tax Bill
New tax laws were introduced during this year and most people received more salaries than they expected due to the changes that were effected by these laws. There are measures that people should’ve taken to ensure that their tax withholding preferences account for changes in tax law but the larger portion of people failed to make these changes. It was a joy to get the big paychecks but imagine the surprise when it occurred to them that their refund will be affected. On the other hand, there are people who received a tax bill that they weren’t expecting. Basically, the changes in tax law this year put a large number of Americans in a bind especially if they did not plan in advance. If you received an unexpected tax bill, the following incentives that will help you to clear it whether you can or can’t afford to .
This first section is for the people who can pay the tax bill. There are various options that are available to you with or without costs. It is important for you to note that it is impossible to extend the deadline of your tax payment. The only thing that you can do is to file an extension so is to get extra time to file your returns. The first option that you have is to pay by check or money order especially if you are planning to file a tax return by mail. IRS has put in place some guidelines that should be followed in the process of filling out a money order check.
Another option that is still available to you is payment by same-day wire. So as to use this method, you will need the services of a bank or financial institution that might charge you a fee for the transaction. When you request the wire transfer, you will need to fill out the ” same day taxpayer” and provide it to the bank.
On the other hand, if you cannot afford to pay your tax bill the options that you can consider but you must act quickly. If you do not clear your tax bill by the due date, the IRS will start charging interest on it. One of the options that are available to those who cannot afford to pay the tax. Is signing up for one of the various IRS payment plans that are available. There are two types of payment plans which are short-term and long-term. Although you do not need to pay any fees to set up these plans, the penalties and interest your accrue shall not be waived. For more information on this topic check out this link.
Supporting reference: https://www.thousandaire.com/