Income Tax Return Online

It is very important to file your tax return by April 15th, or get an automatic extension of time to file. Why? The penalty for failing to file a tax return is 5% per month - per month, not per year! - for every month that you have not filed your taxes. The maximum penalty is 25% of the taxes you owe.nBy contrast, the penalty for failing to pay is half of one percent (0.5%) per month of the amount of taxes you owe. The IRS will also charge you interest on the amount of tax you owe.nOwing additional tax at the end of the year isn't fun. But here's how to get a handle on the situation.n1. File your taxes, or get an extension. n2. Pay as much as you can by April 15th. n3. Consider paying your taxes by credit card, or setting up a payment schedule where taxes are automatically withdrawn from your checking account. n4. If you will not be able to pay off your balance in a few months, ask the IRS for an installment agreement by calling their toll-free number at 800-829-1040. An installment agreement is a monthly payment plan.nTo avoid having to owe the IRS next year, you should increase your income tax withholding. Fill out a new Form W-4. Use the worksheet on the Form W-4 to calculate a precise withholding amount. n