Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses the October tax extension deadline.
The tax extension deadline this year is October 16, 2023. Remember, an extension to file your taxes is not an extension to pay your taxes. But what if you’re still unable to pay your tax bill? One option is to request a short-term payment plan with the IRS. If you have a total tax balance of less than $100,000 (including penalties and interest), you can be put on a payment plan to receive an extra 180 days to pay your balance in full. While this option won’t stop additional penalties and interest from accruing, it will stop any new liens, levies, or garnishments from being issued by the IRS.
If you need longer than 180 days to pay off your tax bill, you can request an IRS installment agreement, currently not collectible status, or submit an offer in compromise. These three options have their own set of rules so you should consult a tax professional to decide which is best for you. As always, doing something is better than doing nothing, especially if you owe a tax balance.
Next week, Phil will discuss tax refunds. See you next Friday!
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