The failure-to-file penalty is often higher than if a failure-to-pay penalty so it is worth it for you to file your taxes in the long run, as you will end up paying a lower penalty.
Try to pay off as much of the taxes you owe the IRS before the penalty kicks in, as this will make the penalty lower.
If you are late to pay your taxes for the first time, you may qualify for a lower penalty through a first-time penalty abatement. [4] X Research source Talk to your accountant or a tax professional for advice on how you can get the penalty lowered.
A short-term plan last 120 days or less and is free to set up. This is a good option if you feel you can get the funds to pay the penalty relatively soon. A long-term plan can last more than 120 days. It costs $31 USD to set up if you are paying with direct debit and $149 USD to set up if you are paying with debit, credit, check, or money order.
It may take several days for your enrollment to go through so sign up sooner than later to avoid having to pay a higher IRS penalty.
If you are paying the penalty in installments, send the check or money order to the address noted on your installments notice from the IRS.
Look for an IRS office near you here: https://apps. irs. gov/app/officeLocator/index. jsp. You can also pay off the penalty in installments in cash by going in person to the IRS office.
If you use an accountant to help you file your taxes, you may make an appointment with them several weeks before the due date so you file your taxes on time. Do not skip filing your taxes, even if you are going to file them late, as this can lead to a steeper penalty. Remember that the tax deadline is December 31. April 15 is the deadline for tax paperwork, not tax payment.
Late payments interest is calculated daily, so you have to keep that in mind, especially if you’re writing a check, since the interest will keep growing.
You can sign up for automatic withdrawals to your savings account each month through your bank so you do not have to worry about doing it yourself.
