If you find yourself in a situation where you cannot pay your tax bill in full, you have a few options of what to do. But the first thing you should do is file your tax return or request an extension of time to file by May 17, 2021 even if you cannot pay it all. If you do not file your tax return or request an extension by May 17th you may face a failure-to-file penalty.
To receive an extension to file you must either file Form 4868 through your tax professional, tax software or using Free File on IRS.gov. Another option is to submit an electronic payment on the IRS website and select Form 4868 or extension as the payment type. However, you should remember that an extension of time to file is not an extension of time to pay. The extension gives you until October 15, 2021 to file your tax return, but taxes owed are still due May 17, 2021.
Another option to consider if you cannot pay your taxes in full is to apply for a payment plan with the IRS on their website. You can also submit the request using Form 9465. If anything, by the May deadline you should at least pay as much of your tax bill as possible to try to reduce the amount of penalties you can acquire. From there you should set up a payment plan with the IRS as soon as you can to get the rest of your tax bill paid.
Whatever you do, do not wait to file your tax return if you can’t pay in full! Follow the steps above to avoid major interest and penalties with the IRS.
As always, if you have any questions, please reach out to Bryson Law Firm, LLC.
