If You Owe Taxes, How Long Do You Have to Pay?

Owing taxes to the IRS can be scary, especially if you’re unsure about the timeline for payment. The IRS provides several options for taxpayers who owe taxes, allowing you to manage your financial obligations without undue stress. In this article, we delve into the details of how long you have to pay if you owe taxes and explore the available payment options.

When are tax payments due?

The deadline for paying taxes typically coincides with the filing deadline for your tax return, which is usually April 15th. If you owe taxes, it’s crucial to understand that paying the amount owed by this date is ideal, as it prevents additional interest and penalties from accruing. However, life doesn’t always go as planned, and if you find yourself unable to pay by this deadline, the IRS offers several alternatives.

What happens if you can’t pay by the due date?

First off, its important to note that there is a difference between filing taxes and paying taxes. Even if you can’t afford to make the payment, its usually best to still file your taxes on time as an initial first step.

If you’re unable to pay your taxes by the filing deadline, the IRS provides several options to help you manage your debt:

1.     Short-Term Payment Plans (Up to 180 Days)

If you need more time to pay your tax bill, you can apply for a short-term payment plan, giving you up to 180 days to pay the full amount. While there is no setup fee for this plan, interest and penalties will continue to accrue until the balance is paid in full.

2.     Installment Agreements (Monthly Payment Plans)

For those who cannot pay their tax liability within 180 days, the IRS offers installment agreements, allowing you to make monthly payments. These agreements typically involve a user fee, but low-income taxpayers may qualify for a reduced or waived fee. Installment agreements can be set up using:

• Direct debit: Automatic payments from your bank account.
• Payroll deduction: Payments directly deducted from your salary.
• Credit or debit card payments, EFTPS, check, or money order.
  

You can apply for an installment agreement using the IRS Online Payment Agreement tool, by calling the IRS, or by submitting Form 9465, Installment Agreement Request.

Final Thoughts

Dealing with a tax bill can feel overwhelming, but knowing your options can make all the difference. The IRS provides various avenues to help you settle your tax debt, whether you can pay in full or need a bit more time. The key is to take action promptly to avoid extra interest and penalties. Whether you opt for a short-term payment plan or a longer-term installment agreement, staying proactive and informed is crucial.

If you’re uncertain about the best path forward, you may reach out to us here or call us at (305) 564-9199 so we can provide you with clarity and peace of mind.

Remember, the sooner you address your tax obligations, the more control you’ll have over your financial future. Taking the right steps now can prevent bigger issues down the line and help you move forward with confidence.

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