Missed the April 15 tax deadline? Don't panic.More than 9.2 million taxpayer accounts were recorded as delinquent for the 2009 tax year, according to an article by the Richmond Times-Dispatch. If you're late, what are your next steps? Long story short, just do it.
Here's what late filers should expect:
Expect penalties
If you're delinquent with your taxes, you should anticipate penalties. There's a fine for not filing by April 15, and there's one for not paying by the deadline. Want to make it stop? Pay as soon as possible.Enclose a Form 9465 Installment Agreement Request
You've decided to file, so you should enclose a Form 9465 Installment Agreement Request. This is a request for a payment plan. On the form, you can write in how much you are willing to pay each month, and the time of the month that is best for you. You can get the form online, or by calling (800) 829-3676 and asking for one. The setup fee is $105, $52, or $43 depending on your income level and payment method. The form is for filers owing up to $25,000.Better now than never
You're filing late and didn't pay. Don't fret. When you get the money, pay your taxes. Don't put it off any longer than you have to. Don't wait until you receive a tax bill from the IRS... that's just asking for trouble.Try to get an offer in compromise
By getting an offer in compromise, the IRS will settle for less. Try to make a compromise when you know you will never be able to pay your taxes. The form is Form 656, "Offer in Compromise." There is an application fee of $150, but it's worth it if your taxes could be significantly less.Contact your local tax advocate to solve IRS conflicts
Are you in a disagreement with the IRS? If no resolution can be reached, call (877) 777-4778 to talk to your local tax advocate. He (she) may be able to help you out considerably.Borrow from a financial institution
It makes sense to borrow from a financial institution if you can't pay your taxes. Why? The interest and fees are lower than the IRS's, and it's cheaper than paying the penalties to the IRS.
