Do Tax Extensions Give You More Time To Pay Your Tax Bill?

If you end up stuck with a large, unexpected tax bill, your first instinct might be to file for a tax extension. While a tax extension gives you six more months to file your income tax, it does not give you more time to pay any tax owed, payment is still due by the tax filing deadline, April 15, 2025. If you don’t pay your tax bill by then, you could face paying penalties and interest. When you file for an IRS tax extension, you must estimate how much tax you owe. If in doubt, shoot for overpaying any tax due rather than underpaying. You’ll get any excess tax payments back as a tax refund when you officially file your return. You aren’t out of options if you don’t think you’ll be able to pay your tax bill by April 15. The IRS offers short and long-term payment plans for those who need them. To request a payment installment agreement, you’ll just need to fill out Form 9465. You’ll have several options to pay, such as setting up monthly Electronic Funds Withdrawal or requesting payments be taken out of your paychecks. Once you’ve filed a payment installment agreement request, the IRS should let you know within 30 days if your request was approved or denied. Even if you set up a payment plan with the IRS, you’ll still be charged a fee and likely have to pay interest on your tax owed until your bill is paid. With that in mind, the best thing to do would be to file and pay by April 15 if you can swing it. Tax + Financial Services of NY can help you figure out your tax due and file your extension. We can also help set up any installment plan. Call us at (631) 585-9698 to discuss your options. #taxpayments #taxdue #installmentplans #irsinstallmentplan #taxextension #longislandtaxes #ronkonkoma #familyowned #taxservices #taxservicesLI #taxservicesNY