...I don't have the money to pay it. What is the best thing for me to do? Should I call them, and try to make payment arrangements, or should I file an extension and try to pay it back later? I know paying it back later will incur penalties, but I'm really not sure about the best thing to do here. Please help me out.
2007-03-18 13:27:45 · 6 answers · asked by Cady 2 in Business & Finance ➔ Taxes ➔ United States
FYI - They do take credit cards....
2007-03-18 14:17:10 · answer #1 · answered by Dave O 3 · 1⤊ 0⤋
The best thing to do is to file the return, and enclose any payment you are able to make. By not filing, you will have failure to file penalties in addition to failure to pay penalties plus interest.
Filing an extension will not release you from the obligation to pay on time and will only keep this issue on your mind for another six months.
So file, and let the IRS send you a bill. If the amount is really large, you could set up a payment plan with the IRS, but that costs money too.
2007-03-18 13:41:13 · answer #2 · answered by ninasgramma 7 · 1⤊ 1⤋
Pay as much as you possibly can by the filing deadline. Any amount outstanding after April 17, 2007 will attrract penalties and interest for late payment of tax. An extention only delays the filing date of the return, not the due date for the payment of the taxes.
If you can't pay it all by April 17, 2007, contact the IRS and set up a payment plan.
2007-03-18 13:34:19 · answer #3 · answered by Bostonian In MO 7 · 4⤊ 0⤋
An extension won't help, it is an extension to file not an extension to pay.
File your return without payment, they will work out a payment plan. You will pay interest, but the interest is reasonable.
2007-03-18 13:39:37 · answer #4 · answered by irongrama 6 · 0⤊ 0⤋
An extension only gives you more time to file - you still owe the money as of the original deadline, and that seems to be your problem.
Go ahead and file your return, then call and ask to set up a payment plan, or file an online request for one. See http://www.irs.gov/businesses/small/article/0,,id=108347,00.html#2
2007-03-18 14:50:56 · answer #5 · answered by Judy 7 · 0⤊ 1⤋
Try to make arrangements with them on paying back.If you don't you will be in a kind of trouble you never thought will happen.Do not file an extension unless it is necessary.They will work with you.After all they need their money back.
2007-03-18 13:38:01 · answer #6 · answered by jany50002002 3 · 0⤊ 0⤋