What To Do If You Can’t Pay Your Taxes
Tax day in New York has come and gone in the last few days and if you haven't filed yet, or if you owe taxes, it's not too late to do something about that.
The Federal Internal Revenue Service and the New York State Department of Taxation and Finance both have programs that are designed to help you if you are running into some difficulties with filing and/or paying your taxes. As someone who waited until the very last day to pay his taxes, the best thing that I can suggest is that you don't hide from it. The sooner you act the sooner you can reach a positive resolution.
So what do you do if you have not yet filed your taxes?
You Should File Your Taxes As Soon As Possible
The IRS suggests that you get your return filed ASAP and pay as much as you can in an effort to reduce any potential penalties and interest. Even though it's after the tax filing deadline, you can still use the various e0file options. Those will be available until the end of the day on Monday, October 17, 2022.
Request a Filing Extension
Most taxpayers are eligible for an extension and that will give you until Monday, October 17, 2022, to submit your 2021 tax return. However, if you owe, you should still make any payment you can as soon as you can to help mitigate those penalties and interest fees.
Set Up a Payment Plan
If you know you cannot pay, the IRS and NYS Department of Taxation and Finance have tons of different payment plan options to help you. There are short-term and long-term options, so act right away and sign up for a plan.
If you have a history of paying your Federal taxes on time, the IRS has a program that can potentially waive all of your penalties and interest. Also, New York State has a series of Taxpayer Rights Advocates who may be able to help with various tax issues.
The most important thing is to do something. You can find more great tax tips on the IRS Website.