How You Should Pay Your Tax Bill and What You Need to Do If You Do Not Have the Cash

Finally, you have paid all your taxes, but there is an ugly truth staring right at you. Instead of zeroing out or a refund you owe Uncle Sam money. If you have enough cash at the bank, there are several ways of paying the IRS. If you are in a situation where you owe more than you can afford the below option can be of great help to you.

  • Pay Directly from Your Bank Account

You can pay your taxes directly from your bank account. You can have your funds withdrawn automatically from your bank account when you e -file or you can select the pay option through a tax professional. Also if you have a savings account, you can pay your taxes online through the IRS Direct Pay Service. You can track payments through email notifications

  • Settle for a Small Amount

The IRS can also allow and give you a compromise for paying your tax debt for a lesser amount. The agency checks your ability to pay the taxes, your income, and expenses to decide whether you qualify or not. You must regularly file your tax returns and not have any bankruptcy cases. Before you submit an offer or compromise, the IRS encourages a person first to consider all other available options.

  • Delay Payment

You can request for a delay payment form the IRS. You will be required to file out specific information such as expenses, monthly income, and personal finances. Until the time you are able to pay your tax debt in full you will be charged interest and penalties by the IRS.

Lacey Tooley

Writing comes naturally to me. From writing fantasy fiction in school to taking it up professionally as an economics and financial markets writer in 2010, I have come a long way. I write tax and budget blogs for TaxVox. My areas of interest include business, law, finance etc.

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