April 11th, 2012
While the due date for taxes is April 17, if you are having trouble scraping up the money, there are ways to stall the taxman. According to a Yahoo article, you must file your tax return by the deadline in order to avoid penalties and interest. However, you can get an extension of up to six months from the IRS.
Four ways to stall payment:
1. Set up monthly installments
If you owe less that $25,000 in taxes, you can create a monthly payment plan. There are several ways to do this – you can fill out an Online Payment Agreement form, search “installment agreements” at IRS.gov or call 1-800-829-1040.
2. Pay by credit
The IRS accepts payment by credit card, which can be helpful if you don’t have the cash on hand and need more time. There are downsides to paying by credit card, however. You will be charged a transaction fee of 3% by the IRS, and if you can’t keep up with the monthly credit card payments, you will be charged interest.
3. Request an offer in compromise
If you are sure you cannot pay your taxes, you have the option to request an offer in compromise from the IRS. They may agree to settle your tax debt for less than the full amount.
4. Try a partial payment installment agreement
In this agreement, the debtor can pay monthly installments for a set period of time and once the collection period ends, the excess debt is forgiven. It is much more difficult to obtain than a offer in compromise, and for both, consult a tax attorney or professional in regards to your options.