If you've calculated your personal income taxes and owe money to the Internal Revenue Service, or IRS (I-R-S), you have several options. The easiest method is paying the IRS by April 15 (fifteenth). If you can't afford to pay what you owe, you're usually granted several alternatives. To have more time to file your return, you can apply for an extension. This awards you more time to file, but you'll be charged interest for the extended time period on any taxes you owe. You might also consider working out a repayment plan with the IRS. To request a repayment plan, fill out an 'installment agreement request' and attach it to your tax return. Within 30 days, the IRS should notify you whether your request was accepted or not. If you don't pay the taxes you owe in full when you file your return, you'll probably receive a bill from the IRS. The first notice will explain why you owe the taxes and request full payment. It will also show you the penalties and interest that have been added to the unpaid taxes since the date they were due. If the IRS has to take further collection efforts to recover any taxes owed, you could be subjected to liens and levies on your property or have future refunds offset. In general, if you owe the IRS, pay what you owe. If you can't pay what you owe, contact the IRS as soon as you can. For legal advice regarding your rights when paying taxes, consult a tax-law professional for more information.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
