It’s always best for taxpayers, including businesses and self-employed individuals, to file and pay on time. However, if the tax due can’t be paid at the time of filing, taxpayers should still file and pay as much as possible to avoid penalties and interest and keep any balance due to a minimum.
Watch Online Payment Agreement Overview for more information on the available options to pay a balance due when not paid in full, including:
- A short-term payment plan to pay within 11-120 days.
- A long-term payment plan, also called an installment agreement, to pay the balance due in monthly installment payments.
Businesses owing $25,000 or less from the current and prior calendar year, and who can pay what they owe in 24 monthly payments or less, qualify to use the online application.
Information provided by e-News for Small Business, Issue #40 #IRS