The May 17 extended tax filing deadline has arrived. Those who still aren’t ready may feel panicked, yet experts say there are options for people who aren’t prepared to file or pay.
They can submit Form 4868 through filing software, which may help estimate their tax balance.
Filers may also request more time through Free File, the IRS tax software for those with an adjusted gross income below $72,000.
However, filing an extension won’t prolong the deadline to pay.
“We tell our clients that they need to pay as much as they can, even if it’s not much,” Barlow said.
Penalties for tax balances will start to accrue after May 17. The failure-to-pay penalty is 0.5% of the unpaid taxes per month, with a cap of 25%.Those who can’t afford to pay now may apply for a payment plan online, by phone or in person. Depending on the plan, filers may owe a set-up fee, along with accrued penalties.
However, the IRS may be willing to offer penalty relief in some cases.
Filers may consider adjusting their withholdings to avoid trouble next year, Barlow suggests, and with changing tax laws, it may be smart to work with a professional.
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Source: Here’s what to know if you can’t file or pay your taxes
