Instead of getting a refund, you may end up owing the IRS money. It’s not uncommon. Filing early even in this case will still give you enough time to pay- until May 17th, that is.
Most people who wait until the last second may make troubling financial decisions as they scramble to find the money to do so. In some cases, they might even tap into savings that they shouldn’t tap into, further putting themselves and their financial plans at right.
But what happens if you can’t pay until May 17th? In that case, you can apply for a payment plan. But filing early will at least give you the time to prepare for this, since setting up such a plan does require a fee.
Have you heard of an offer in compromise? Also known as an OIC, this allows you to settle your tax debt for less than the full amount. The IRS probably knows how much they can expect to collect from you within a period of time. If you offer more than this amount then it’s very likely for them to agree to this option.
You have the option to simply ask for an extension by filing a Form 1127. Generally, you’ll get around six months to pay your debts to Uncle Sam. And, finally, there’s the option to call the IRS at 1-800-829-1040 to request a temporary delay of the collection process.
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