New tax laws were introduced during this year and most people received more salaries than they expected due to the changes that were effected by these laws. There are measures that people should’ve taken to ensure that their tax withholding preferences account for changes in tax law but the larger portion of people failed to make these changes. It was a joy to get the big paychecks but imagine the surprise when it occurred to them that their refund will be affected. It is also quite surprised when another group of people received a tax bill despite the fact that they weren’t expecting one. Basically, the changes in tax law this year put a large number of Americans in a bind especially if they did not plan in advance. Whether you can or can’t take care of the unexpected tax bill, the following guidelines will ensure that you clear it.
If you can afford to pay your tax bill then this section is meant for you. There are various options you can choose from some of them which are free while others require you to incur some expense. One thing that you need to understand is that you cannot extend the due date of your tax bill. If time is running out for you to file your returns, it is possible for you to request for extra time. Using a check or money order is a suitable choice for a person who would like to file their tax returns by mail. IRS has put in place some guidelines that should be followed in the process of filling out a money order check.
You can also consider wiring the money to the IRS so as to pay your tax bill. So as to use this method, you will need the services of a bank or financial institution that might charge you a fee for the transaction. Use of various documents you need to fill out and provide them with the bank upon the request of the wire transfer.
Although they require a first reaction, there are various options that are available to those people who cannot afford to pay their tax bill. Note that the IRS will start charging interest on your bill after the due date is passed. If you’re not able to pay your bill there are various IRS payment plans that you can sign up for. There are two types of payment plans which are short-term and long-term. It is important for you to note that you will still need to pay for any interest that is charged on your tax bill. Find out more here.