Everyone looks forward to getting their refund after they finish filing their taxes. Unfortunately, not everyone will receive a refund and some will even end up owing money to the IRS. If you owe money to the IRS this year, read over a few of these tips to make it easier on yourself.
The first tip is the simplest one — pay the bill! As soon as you get the bill it’s best to pay it right then and there if you have the money. If not, pay as much of it as you can to avoid any interest and penalties that come with waiting to pay. If you don’t have the cash on hand, maybe consider using a credit card to pay some of the bill.
Not everyone is made of money so if you would like some time to pay this bill, apply for the Online Payment Agreement. Using this method you can set up a direct debit payment to be scheduled each month for an easy way to pay. The set-up fee is a lot less than many other payment plans and this one is set up via IRS.gov.
Edit Your Withholdings
In order to not owe money to the IRS for years to come you may have to edit your withholdings. People who owe each year tend to have less money withheld from their paychecks. Increasing the amount of money withheld from your paychecks might be a better option for some. Seeing a small amount of money taken from your paycheck each pay period may be easier to handle, rather than paying a huge lump sum in April. Edit your withholdings by filling out a new W-4 form.
Owing the IRS money each April is not the ideal situation to be in, but there are ways to manage it. If you still need help filing your taxes, or you need IRS representation, contact the accountants at Berkow, Schechter & Company LLP. To learn more, or to schedule an appointment, give us a call at (203) 356-1061.