If you will have a balance due it’s still a good idea to file sooner, since the IRS charges a late payment penalty of 0.5% per month until the tax is paid, maxing out at 25% of the total amount due.
Delray Beach, Florida (PRWEB) May 13, 2016
Hopefully by this time taxpayers have either filed their taxes, or filed for an extension. If they’ve filed for this season, they can be congratulated since they are done. However, if they are one of the approximately twelve million Americans that request extensions every year, they still have some work to do. Remember, if it is estimated that the taxpayer will owe money when their extension is granted, they were still required to pay at least 90% of the total tax debt by the April 18th deadline.
Now, with their extended October 17th deadline, here are some of their next steps. If they are going to be receiving a refund, they will want to file as soon as possible so they can get the money they are owed. Ian Gardner of Sigma Tax Pro encourages taxpayers to file as soon as possible. “If a taxpayer has a balance due it’s still a good idea to file sooner, since the IRS charges a late payment penalty of 0.5% per month until the tax is paid, maxing out at 25% of the total amount due.” They can pay their tax bill in a variety of ways, including by credit card or bank loans.
Over 2.5 million taxpayers find themselves in a situation where they cannot pay the amount due, and the IRS has options. If they want to pay the return off over time, they can attach a Form 9465 Installation Agreement Request to their return, which requests a payment plan that can extend up to 3 years. In rare circumstances, the IRS may even agree to settle for an amount less than what is owed, if their financial situation meets their criteria.
Sigma Tax Pro provides a full range of essential services for tax pros. This includes industry leading software solutions as well as technical support, tax preparation support and client retention strategies. Sigma Tax Pro specializes in helping tax preparation firms expand their businesses, open new offices and increase their client base.