CPA Anthony Mangiameli of Insero & Company discussed your options if you owe money to the government after filing your income tax return Monday on News 8 at Sunrise.
Mangiameli said the best advice is to file on time and pay as much as as possible to avoid a late filing penalty. You can pay by phone, online, check or money order. If you don’t have any cash, you can get a loan or use a credit card to pay for your taxes. Mangiameli said although these options will include interest charges, they will be lower than the IRS interest and penalties resulting from unpaid taxes.
There is an “Online Payment Agreement” tool on the IRS website that can be utilized if you can’ t pay your taxes in full, click here. To be eligible for this feature, Mangiameli said the amount owed should be $50,000 or less for individuals, and $25,000 or less for businesses. You can make monthly payments or set up an automatic deductions from you debit account.
If you’re ineligible for the IRS payment plan, Mangiameli said you should complete and mail Form 9465 (Installment Agreement Request) and Form 433-F (Collection Information Statement). Both forms can be downloaded from the IRS website.
Mangiameli said do not ignore your tax bill. Call the IRS and let them work with you to address your financial hardship. For more information, visit the New York State Society of CPAs website, click here.