What to Do If You Can’t Pay Your Taxes by the Deadline

Tax day is here, and for some, it brings stress about paying owed taxes. If you don’t have the money to pay your taxes, don’t panic! Taking the right steps can save you from unnecessary penalties and interest. Tracie Lowe, CPA, with OnPoint Tax Relief, is here to help you navigate this situation.

Step One: Request an Extension

The first thing to do is ensure you’ve filed your taxes or requested an extension. An extension gives you more time to file your return, but keep in mind—it doesn’t extend the time to pay. This is why consulting with Tracie Lowe, CPA, is essential. She will confirm your extension and help you create a solid plan to avoid penalties.

Three Payment Options the IRS Will Accept

Even if you can’t pay the full amount, the IRS has options:

1. Short-Term Payment Plan

If you can pay off your taxes within 120 days, a short-term plan may be best. This option avoids setting up formal agreements but still accrues interest.

2. Installment Agreement

An installment agreement allows you to break your tax bill into manageable monthly payments. This requires applying through the IRS and may include setup fees.

3. Offer in Compromise (OIC)

If you’re facing financial hardship, the IRS may accept less than you owe. This option is complex and requires professional assistance to ensure proper filing.

Tracie Lowe can help you choose and request the best agreement for your financial situation.

Penalties for Not Paying on Time

Failing to pay your taxes on time can result in significant penalties:

• Failure-to-Pay Penalty: The IRS charges 0.5% of your unpaid taxes every month until the balance is paid in full.

• Interest Charges: Interest accrues daily on unpaid taxes and penalties, making your bill grow over time.

• Potential Tax Liens: If left unpaid, your debt can lead to a federal tax lien on your property or assets.

By requesting the right payment agreement, you can minimize these penalties and keep your finances under control.

Act Now with OnPoint Tax Relief

Don’t let unpaid taxes stress you out. Tracie Lowe, CPA, at OnPoint Tax Relief, specializes in IRS tax resolution and payment plans. She will represent you before the IRS and guide you step-by-step to ensure you meet deadlines, reduce penalties, and get back on track.

Reach out to Tracie Lowe, CPA, today and take the first step toward resolving your tax concerns.



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