ATLANTA - If you missed the May 17th tax filing deadline and you owe money, you should sort out how to get it to the IRS sooner rather than later because the delays will cost you. You will accrue penalties and interest.
These are the four reasons, per the IRS, it will tack on fees.
- Failure to file by the deadline
- Return not filed
- Tax payment comes up short
- Payment method declined by the IRS
The IRS has a list of how it applies penalties: PENALTY FORMULA. There are also multiple ways to pay your debt to the government: direct pay from a checking or savings; debit or credit card; cash; or, installment plans.
There are also a variety of installment plans you can access.
- Short-Term Payment Plan (120 days or less): Free
- Installment Agreement with Automatic Withdrawal: $31 set-up fee
- Installment Agreement without Automatic Withdrawal: $149 set-up fee
Even if you file for an extension, which is due Oct. 15, 2021, you will still accrue penalties and interest until the full amount is paid. Some set-up fees may be waived, depending on income requirements.
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