There’s a late filing penalty (5% a month up to 25%), late payment penalty (.5% a month up to 25%) and interest accruing as you speak.
If you owe $1,500 and don’t have it, you should still file and work with IRS on a payment plan. One way to do that is file Form 9465 as part of the tax return requesting an installment agreement.
Another option, although not necessarily recommended, is you can pay the taxes owed with a credit card.
ricci777 on
Don’t be scared. Call them. Expect long wait times. You don’t go to jail for not filing. Just call sooner rather than later. They will make a payment arrangement with you. Don’t wait, the longer you wait the more you’ll end up paying. Also, sometimes, depending on circumstances you get penalties waived. Also, they file for you and don’t do any kind of deductions, so refile using an accountant, likely you owe less. Just call them and never ignore any certified mail they send.
Aggravating-Walk1495 on
Others have given good answers if you DO owe, but… first of all, DO you actually owe? WHY do you owe? What income did you forget to declare?
Was it something like crypto that you forgot to report, or something along those lines?
Whatever it is, just make sure that it isn’t something you need to adjust.
If you’ve filed the same type of return in the prior 3 years if you had a requirement to file and didn’t owe penalties, you may be able to get the late filing and late payment penalties (but not the interest) waived on 2024. See [First Time Abate](https://www.irs.gov/payments/administrative-penalty-relief).
Then set up a payment plan. Interest and late-pay penalties will accrue even with the installment agreement, so you should generally pay what you can afford.
epursimuove on
File your 2024 taxes ASAP, regardless of whether you can pay.
Then go to https://www.irs.gov/payments/online-payment-agreement-application . Since you owe less than $50k, you don’t need to file a form, talk in person, or disclose personal information. If you can pay within 180 days, you will continue to owe interest (at 7%) but won’t pay other fees. If you need longer, you can set up direct installments for a small fee, which is waived if you’re low income.
You can also pay in full now with a credit card, but you’ll pay a few percent for the CC, and also probably pay CC interest rates, which are a lot higher than what the IRS charges.
6 Comments
There’s a late filing penalty (5% a month up to 25%), late payment penalty (.5% a month up to 25%) and interest accruing as you speak.
If you owe $1,500 and don’t have it, you should still file and work with IRS on a payment plan. One way to do that is file Form 9465 as part of the tax return requesting an installment agreement.
Another option, although not necessarily recommended, is you can pay the taxes owed with a credit card.
Don’t be scared. Call them. Expect long wait times. You don’t go to jail for not filing. Just call sooner rather than later. They will make a payment arrangement with you. Don’t wait, the longer you wait the more you’ll end up paying. Also, sometimes, depending on circumstances you get penalties waived. Also, they file for you and don’t do any kind of deductions, so refile using an accountant, likely you owe less. Just call them and never ignore any certified mail they send.
Others have given good answers if you DO owe, but… first of all, DO you actually owe? WHY do you owe? What income did you forget to declare?
Was it something like crypto that you forgot to report, or something along those lines?
Whatever it is, just make sure that it isn’t something you need to adjust.
[https://www.irs.gov/payments/online-payment-agreement-application](https://www.irs.gov/payments/online-payment-agreement-application)
If you’ve filed the same type of return in the prior 3 years if you had a requirement to file and didn’t owe penalties, you may be able to get the late filing and late payment penalties (but not the interest) waived on 2024. See [First Time Abate](https://www.irs.gov/payments/administrative-penalty-relief).
Then set up a payment plan. Interest and late-pay penalties will accrue even with the installment agreement, so you should generally pay what you can afford.
File your 2024 taxes ASAP, regardless of whether you can pay.
Then go to https://www.irs.gov/payments/online-payment-agreement-application . Since you owe less than $50k, you don’t need to file a form, talk in person, or disclose personal information. If you can pay within 180 days, you will continue to owe interest (at 7%) but won’t pay other fees. If you need longer, you can set up direct installments for a small fee, which is waived if you’re low income.
You can also pay in full now with a credit card, but you’ll pay a few percent for the CC, and also probably pay CC interest rates, which are a lot higher than what the IRS charges.