What to do when you can’t pay the IRS on time

(InvestigateTV) — Owing money to the IRS is a common problem, according to John Kiernan, managing editor at WalletHub.

“Oftentimes people underestimate how much they’re going to owe, and so they have a tough time coming up with it by tax day,” Kiernan said.

If you can’t pay your full tax bill by the deadline, Kiernan said the first step is still to file your return on time and pay as much as you can.

“If you can’t pay and you think you might just need a month cause of some cash flow issues or whatever, you should file your return and then wait for a bill,” Kiernan said. “You’ll probably get that around 30 days, and you’ll have to pay a small fee for not paying on time, but it won’t be that much and a little bit of interest, but it’ll still be manageable.”

If you need more time, Kiernan said you can look into options through the IRS, including requesting up to a 180-day extension to pay.

“And that’ll also have a small fee and some interest, but it kind of pales in comparison to what you might have to pay otherwise,” Kiernan said.

Another option is an installment agreement, which can let you pay over time.

Kiernan said what you don’t want to do is ignore the bill or put it off indefinitely.

“The IRS has a long memory and they’ll come back after you with the penalties, and things like that aren’t worth it,” Kiernan said.

Kiernan also said if you owe this year, it may be worth checking your tax withholdings so you’re less likely to end up in the same spot next tax season.