As you complete your tax return, you are struck with horror. You do not have the finances to pay your tax! You have paid it before, and sometimes, you even get a Pay For My Taxes return. So what do you do now that you are unable to pay?
What Happens When You Can’t Pay Your Taxes?
There are many reasons why one may have difficulty paying for their taxes. In this case, it may be tempting just to skip your tax altogether. They will probably overlook it, and you can just file for the next financial year.
However, it is highly encouraged you to Pay For My Taxes. It is illegal and can result in jail time and fines. The IRS can also take control of your assets, which will make it a bigger and more difficult situation for you. So what do you do now?
What Are My Options If I Can’t Pay My Taxes on Time?
You will have two main options: to file for an extension or pay for my taxes late. Both of these options will have their consequences, but if you cannot find another way to pay your taxes, they are your only options left.
1. Filing for Extension
Most people do not know that they can file for an extension on their tax return form. You can submit Form 4868 to the IRS by the due date to obtain this extension.
However, this is only an extension for the tax return filing. This does not free you from paying your tax liability. When your due date comes, you will still be required to pay for your tax liability. Additionally, you doing so will also give you penalties of 5% on each month that your tax is paid late, capped at a max of 25% of your tax liability.
If you are late by more than 60 days, you will be paying either $435 or your total tax liability, whichever is smaller. This amount could still be topped off with additional penalties if you have a higher unpaid tax or a later filing date.
Filing for an extension may give you blanket protection from legal cases. However, it does not save you from the fees. You will still need to pay for tax liability on your due date, and failure to do so would still give you penalty fees.
2. Paying Late
You can send in your documents for tax return and just pay late. However, this will give you additional penalties and charges, as well. How much penalty and costs you have will depend on your total taxes and unpaid balances, and it continues to increase as time passes by that you are late in payment.
Eventually, the IRS may end up sending demand letters for you to pay. The worst-case scenario is that they will charge you for non-payment of taxes, which could fine you even bigger or end up in some jail time for you.
Conclusion
No matter how much you look at it, there is no way out. This is why you are advised to pay your taxes throughout the year so that when the month of filing tax returns arrives, you will no longer have to pay a considerable amount. If you are still unable to pay, you may look for some financial aid through friends and family or apply for loans. Regardless of your situation, you will need to pay your taxes on time, and failure to do so will harm you even more.
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