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No one likes to hear that they owe taxes to the IRS--especially if they don’t have the money to make the payment in full. For such reasons, people often ask how much time they have to pay taxes after filing. Discover how much time you have to pay back taxes and what options you have if it’s not enough time.
Tax Payment Deadlines
This year, the IRS announced that the individual federal income tax filing due date for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. Even if you can’t pay by Tax Day, you should still file your return. Then you can review your options for how you can pay the IRS what you owe by May 17, 2021.
Below we have put together some options if you can’t make payments by the filing deadline:
- Request a short-term extension to pay the full amount: The IRS will provide up to 120 days for taxpayers to pay their full tax balance. There’s no fee to request the extension, but there is a penalty of 0.5 percent per month on the unpaid balance. To request an extension, you will need to complete an online payment agreement on the IRS website.
- Set up an installment agreement: If you need more than 120 days to pay your taxes, you can set up an installment agreement with the IRS. The type of agreement you request would depend on your situation, including how much you owe and how soon you can pay the balance. An experienced tax attorney can help you with the process.
- Request an offer in compromise: An offer in compromise is a way to reduce your tax dent permanently. An offer in compromise allows you to settle your debt for less than the full amount when you demonstrate that you can’t pay your full tax debt because it would create financial hardship.
How Do I Know Which Option Is Best for Me?
If your tax debt has added a serious burden to your financial situation, you should consider the various payment options available to you. To determine which option is best for your situation, you should contact an experienced tax attorney. Our Tampa tax attorneys can analyze your case and help you find a solution to your tax problem. With over 20 years of experience serving more than 2,500 taxpayers in Florida, we can help you achieve tax debt relief.
Contact our Tampa tax attorneys today at (813) 295-7648 to schedule a consultation!