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Paying Your Taxes On Time

Running out of time to pay your taxes? You have a number of options - but not paying your taxes is not one of them. The old adage - "Pay me Now, or Pay me Later" is a very appropriate saying when it comes to paying taxes. You could end up paying a lot more in penalties plus interest. If you have already done some preliminary work and find that you owe tax but don't have the money to pay it all when you file, you have a number of options. Below are some tips that can help you lower the amount of interest and penalties when you don't pay the full amount to pay on time.

1. File by April 15th and pay as much as you can.

Filing on time ensures that you will avoid the late filing penalty. Paying as much as you can reduces the late payment penalty and interest charges.

2. Consider getting a loan or paying by credit card.

The interest and fees charged by a bank or credit card company may be lower than IRS interest and penalties. Click Here for a few loan options to consider.

3. Request a payment agreement.

If you owe less than $50,000, you may be able to establish an installment agreement on-line, even if you have not yet received a bill for your taxes. Go to IRS.gov and complete and submit Form 9465, Installment Agreement.

It is always best to file on time, pay as much as you can by the tax deadline, and pay the balance as soon as you can. If you need extra time to file your taxes, you should also consider filing for a tax extension. Click Here for some tax extension providers.

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