If this year’s tax filing deadline will be a “pay” day for you and you cannot pay the full amount you owe, you should still file your return by the due date and pay as much as you can.

You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. To pay by credit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. The service providers charge a convenience fee based on the amount you are paying. Do not add the convenience fee to your tax payment.

• Official Payments Corporation
  1-800-2PAY-TAX (1-800-272-9829)
  www.officialpayments.com
   
• Link2Gov Corporation
  1-888-PAY-1040 (1-888-729-1040)
  www.pay1040.com

If this option is not a good one, you may be able to pay any remaining balance over time in monthly installments through an installment agreement. If you can not fully pay your taxes, you can apply to pay less than the full amount owed through the Offer in Compromise program.
 
To apply for an installment payment plan, attach Form 9465, Installment Agreement Request, to the front of your tax return. The IRS has streamlined the approval process if your total taxes (not counting interest, penalties or other additions) do not exceed $25,000 and can be paid off in five years or less. Be sure to show the amount of your proposed monthly payment and the date you wish to make your payment each month.

The IRS charges a $43 fee for setting up an installment agreement. You will also be charged interest plus a late payment penalty on the unpaid taxes. The late payment penalty is usually one-half of one percent per month or part of a month of your unpaid tax. The penalty rate is reduced to one-quarter of one percent for any month an Installment Agreement is in effect if you filed your return by the due date (including extensions). The maximum failure to pay penalty is 25 percent of the tax paid late.

If you do not file your return by the due date (including extensions), you may have to pay a penalty for filing late. The penalty for failing to file and pay timely is usually five percent of the unpaid tax for each month or part of a month that your return is late. The maximum penalty for failure to file and pay on time is 25 percent of your unpaid tax. 

For more information about filing and paying your taxes, refer to the Form 1040 Instructions or IRS Publication 17, Your Federal Income Tax. You can download forms and publications from this Web site or request a free copy by calling toll free 1-800-TAX-FORM (1-800-829-3676).

Taxpayers who need Form 9465 or any other federal tax form or publication should act soon to be sure they have the item in time to meet the April deadline.

Links:

• Electronic Payment Options
• www.officialpayments.com
• www.pay1040.com
• Form 9465, Installment Agreement Request
• Installment payment process
• Partial Pay Installment Agreements
• Is an Offer in Compromise Right for You?
• Publication 17, Your Federal Income Tax