So what are the options if you dont have the cash to pay or you dont have time to file by April 15th?

1.   Procrastinating and filing them late.

You can pay what you owe now, and file a Form 4868 which is a application to extend your time to file, by mail (April 15th!) or electronically.  (*Note – you can still file for free if your income is below $56,000 through the IRS new “Free file” system.

The Form 4868 buys you six months to complete your 1040.   However, it wont give you more time to pay up the taxes owed.

2. Payments can be made by

• Check (Goes to a special Address)
• Electronic Funds tranfser
• Credit card

If you cant find the extra dough, try finding a quick loan to set you over until you can pay it back – as the governemnt is the LAST person you want knocking on your door!  If you owe under $10,o00, the IRS has to give you a option of a installment deal.

3.  The IRS even takes credit card style installments.

Requirements for paying your taxes in installments are;

• Have filed and paid taxes on time for 5 previous years
• Owe $25,000 or less
• Show you can pay back the full amount in 3 years

Filing a 1040 or a 4868 requires you to pay 90% of the total owed, or the government will put a .5% penality a month on the unpaid balance.  This is better than the 5% a month for not filing a form at all by April 15th!    These penalites can reach a max of 25% of the amount due, and are in addition to the interest you have on your unpaid amount.   Remember, just file now!