Can’t pay your taxes by April 15th?

April 15^th is this week and there will be those of you who owe income tax but can't pay the full amount by the 4/15/10 deadline. One option is to file an Extension but you will be charged penalty and interest up to the date you file your tax return. Another option is to file your return on time and pay as much as you can to reduce penalties and interest. You can then (1) request more time to pay based on your particular circumstances; (2) request an installment agreement—those who owe $25,000 or less in tax, penalties, and interest can apply for an installment agreement by using the Online Payment Agreement (OPA) option at:

www.irs.gov/individuals/article/0,,id=149373,00.html

or (3) charge the taxes on a Visa, American Express, MasterCard, or Discover Credit Card, Visa Consumer Debit Card, or a NYCE, Pulse or Star Debit Card. The first option can be difficult to obtain, and only provides an additional 30 to 120 days to pay the tax in full.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.