Don’t Wait To Know What You Owe for Taxes
In 2018, 56% of US taxpayers had additional money owed for taxes. At this rate, roughly one out of every two tax filers paid more money to the government at tax time. With over a 50% chance of owing on your taxes, don’t set yourself up for a surprise on what you owe for taxes on July 15th.
Many tax filers do not realize that if you file taxes early, you still have until the official tax deadline to mail in your payment without incurring fees or fines. If you know that you will owe, or even think you may owe taxes this year, prepare your taxes now and use the additional 90 days to plan for how you will pay your tax bill. With the financial insecurities resulting from the global pandemic, an unexpected tax bill does not have to be part of the stress.
There is no down-side to preparing now, even if you hold the forms until closer to the due date to pay at the same time as filing. And once you know how much you owe, you can consider several options available if you still can’t cover the entire bill by the new tax deadline of July 15th. The IRS offers several deferred and payment plan options for paying a tax bill, including:
-Full Payment Agreements (up to 120 days)
-Offer in Compromise or Partial Payment Installment Agreement
-Temporarily Delay Collection
Regardless of how you choose to cover your tax bill, filing well before the deadline will give you the best chance of avoiding fees and additional financial stress.
For a limited time, Profit Wise Accounting is offering payment plans and delayed payment options. Schedule your free virtual consultation today!