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. Most people did not adjust their tax withholding preferences so as to account for the changes in tax law. Despite the fact that they enjoyed bigger paychecks, it was a surprise and disappointment when they found out that their refunds will be affected. It is also quite surprised when another group of people received a tax bill despite the fact that they weren’t expecting one. Owing to the changes that were made to the tax law in this season, most Americans are in a tricky situation because they failed to plan ahead. Whether you can or can’t take care of the unexpected tax bill, the following guidelines will ensure that you clear it.
If you can afford to pay your tax bill then this section is meant for you. There are various options you can choose from some of them which are free while others require you to incur some expense. One thing that you need to understand is that you cannot extend the due date of your tax bill. 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.
Another option that is still available to you is payment by same-day wire. So as to use this method, you will need the services of a bank or financial institution that might charge you a fee for the transaction. When you request the wire transfer, you will need to fill out the “ same day taxpayer“ and provide it to the bank.
Although they require a first reaction, there are various options that are available to those people who cannot afford to pay their tax bill. Note that the IRS will start charging interest on your bill after the due date is passed. One of the options that are available to those who cannot afford to pay the tax. Is signing up for one of the various IRS payment plans that are available. There are two types of payment plans which are 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. Find out more here.