Don't Let Penalties & Interest Give You the Blues: Tips to Stay Ahead of the IRS

Congratulations! We've officially made it past tax season. Now that we can breathe a sigh of relief, let's talk about those pesky late tax payments.

Late tax payments may not be causing you stress at the moment, but let's be honest, they never really go away. If you don't pay your taxes on time, you may face penalties and interest charges that can add up faster than you can say "taxation without representation."

But fear not, there are steps you can take to avoid these pesky penalties and interest charges, even if you're not currently in the throes of tax season madness.

For starters, if you're self-employed or have income from other sources not subject to withholding, you may need to make estimated tax payments throughout the year. Making these payments on time can help you avoid the wrath of the IRS. Your trusty CPA can help you determine how much you need to pay and when.

If you can't pay your taxes in full by the due date, you can always set up a payment plan with the IRS. Just be aware that interest and penalties will still accrue until it's paid in full.

If you need more time to file your tax return, you can request an extension. Just keep in mind that this gives you more time to file, not more time to pay. To avoid penalties and interest charges, you should still make an estimated payment by the original due date.

And finally, if you find yourself in a sticky tax situation, don't be a stranger to the IRS. They may be willing to work with you to set up a payment plan or offer other options to help you pay your taxes. Communication is key, people!

So there you have it. Whether it's tax season or not, late tax payments are never a good thing. By following these tips and working with a CPA, you can avoid unnecessary penalties and interest charges, and keep your finances in good health. If you have any questions or need assistance with your taxes, feel free to reach out.

Cheers to having survived tax season,

Jake Linville, CPA

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.