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. Despite the fact that they enjoyed bigger paychecks, it was a surprise and disappointment when they found out that their refunds 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. Whether you can or can’t take care of the unexpected tax bill, the following guidelines will ensure that you clear it.
This first section is for the people who can pay the tax bill. There are various options you can choose from some of them which are free while others require you to incur some expense. There is a due date of your tax bill and it is very important for you to understand that you cannot extend this date before proceeding. 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.
You can also consider wiring the money to the IRS so as to pay your tax bill. Is important for you to note that you will need to do this through your bank or financial institution and you will be charged a fee for the transaction. Use of various documents you need to fill out and provide them with the bank upon the request of the wire transfer.
Although they require a first reaction, there are various options that are available to those people who cannot afford to pay their tax bill. Note that the IRS will start charging interest on your bill after the due date is passed. One of the options that you can consider is to sign up for IRS payment plans. These payment plans can be divided into short-term and long-term. Even with these payment plans, you’ll still need to pay for any interest that is charged on your tax bill. Find out more here.
Reference: from this source