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File electronically. Did you know that you can get your refund in half the time if you file your returns electronically? It's the fastest, easiest, and most accurate way to file. According to the IRS, more than 68 million taxpayers used electronic filing in 2005.
My Returns Are Ready, But I Can't Pay
When we get the bad news that we owe unexpected taxes, it can create a good deal of stress. But before you do anything drastic, there are a few options for you to consider.
1. If you have your returns ready and file electronically before April 15 but don't have the cash available to pay the money due, you can authorize the IRS to deduct the payment from your bank account on the April due date without any extra fees. It's just like scheduling an online payment for any other bill you have.
2. You can charge the money due to a credit card. The interest rate charged on your credit card may turn out to be better than the interest and penalties you'll have to pay the IRS for late taxes. It may also pre- vent a negative impact to your credit rating. To pay your taxes by credit card, call (800) 272-9829. The IRS doesn't charge a fee for credit card payments, but most credit card companies charge a processing fee for the transaction.
3. Take a short-term loan from your bank or credit union. This option often has lower interest rates than you can get on your credit card, especially if the amount you need isn't very high.
4. Apply for an installment agreement with the IRS (IRS Form 9465). If possible, pay some of your amount due by the due date. Anything that you pay will help prevent interest and penalties from accruing on the amount paid by April 15th. Interest on your amount due is charged daily and there is also a monthly penalty fee. If you cannot pay the total amount due, you can apply for an installment agreement with the IRS. This agreement allows you to make monthly payments
April or Not—It's Always Tax Time