Wednesday, September 18, 2019

How to Pay Your Taxes


Finding out that you owe money to the IRS can be both intimidating and overwhelming. However, if it turns out that you have tax liability, don’t panic. You have many options for getting your taxes taken care of.   


Paying Online

One of the simplest options, one that many people prefer in this day and age, is paying their taxes online. If you go to the official IRS website, you will find many safe payment processor options that will allow you to either pay your tax debt in full or to pay whatever you can at the given moment. If you prefer, you can also call the official IRS number and make your payment with the help of a live IRS agent.

Checks or Money Orders

It is also acceptable to pay by check or money order if that’s what you prefer. Just make your payment out to the United States Treasury and then send it in, along with any helpful forms or copies of documentation that you might have.

Loans

Regardless of how you pay, you may find that you can’t pay all that you owe, at least not easily. If this is your situation, you may want to think about taking out a loan to make your tax payment.

Whether it’s borrowing money from family or friends, taking out a home equity loan, or even using your credit card, this is often a smart step since IRS interest often compounds daily, on top of late payment penalties.

Other options include requesting an extension or a payment arrangement with the IRS directly.

Unfortunately, taxes do have to be paid, one way or another. Work with the IRS and your financial advisor to find the payment options and schedule that work best for you and your situation.

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