Many people in New Jersey were concerned about the outcome of filing their 2018 tax returns. According to CNBC, 30 million in America received a tax bill instead of a tax refund. Unfortunately, many people choose to ignore the bill, but there may be serious consequences for doing so. These may range from a ruined credit score to criminal prosecution.
While Americans are still grappling with the changes in the new tax reform, it is important to file early going forward. The balance does not need to be paid until April 15, but if people wait until the very last minute to file taxes and then they owe, that deadline may be impossible to meet. For those who do owe on taxes now or may owe taxes in the future, here are some ways to take care of that bill.
Pay electronically
Forbes says that when it comes to paying a tax bill, the IRS accepts the following forms of electronic payments:
- Direct pay
- Wire transfers
- Debit or credit cards
- Electronic funds withdrawal
Pay by check or money order
Even people who e-file their tax returns can pay by check or money order. The check should be made payable to the “United States Treasury.” Ensure identifying information is included on the check, such as social security number, name, address and phone number. If not, write it in along with “[Tax Return Year] Form 1040.”
Pay by cash
Recently, the IRS has begun to take cash payments. For Americans who do not have bank accounts or who operate a cash business, this may be the most convenient option. The PayNearMe program allows people to find participating locations to make payments of up to $1,000. The process takes five to seven business days, so factor this in when trying to meet the deadline.
The last organization or agency anyone wants to owe money is the IRS. People who cannot pay by the deadline may be able to negotiate a payment plan. For those who cannot, note that it is always better to pay late than not pay at all.
This article provides information on how to pay a tax bill to the IRS. It should not be used in place of professional financial advice or interpreted as legal advice.