Tips on How to Clear You’re your Tax Bill
New tax laws were introduced during this year and most people received more salaries than they expected due to the changes that were effected by these laws. There are measures that people should’ve taken to ensure that their tax withholding preferences account for changes in tax law but the larger portion of people failed to make these changes. Despite the fact that they enjoyed bigger paychecks, it was a surprise and disappointment when they found out that their refunds will be affected. On the other hand, there are people who received a tax bill that they weren’t expecting. Basically, the changes in tax law this year put a large number of Americans in a bind especially if they did not plan in advance. Whether you can or can’t take care of the unexpected tax bill, the following guidelines will ensure that you clear it.
This first section is for the people who can pay the tax bill. There are various options you can choose from some of them which are free while others require you to incur some expense. There is a due date of your tax bill and it is very important for you to understand that you cannot extend this date before proceeding. However, it is allowed for you to request for extra time so as to be able to file your returns. For personal plans to file the tax returns by use of mail, you can always choose to wire your payment or send a check. IRS has put in place some guidelines that should be followed in the process of filling out a money order check.
You can also consider wiring the money to the IRS so as to pay your tax bill. This payment can be done through a bank or any other relevant financial institution at a certain fee. Is important for you to note that you might need to fill out a taxpayer worksheet and provide your bank with it on the day that you request the wire transfer.
Although they require a first reaction, there are various options that are available to those people who cannot afford to pay their tax bill. The IRS will start charging interest on your tax bill if you do not pay by the time it was supposed to be paid. One of the options that you can consider is to sign up for IRS payment plans. These payment plans can be divided into short-term and long-term. Although you do not need to pay any fees to set up these plans, the penalties and interest your accrue shall not be waived. For more information on this topic check out this link.
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