5 things to know if you can't pay your taxes on time and need an extension

- Monday, April 18 is the last day for most of us (April 19 in Massachusetts and Maine) to file our 2016 tax returns. You have until midnight and the IRS urges you to file on time even if you can’t pay what you owe. This, they say, saves you from potentially paying a penalty for a late filed return.

Here are the 5 things to know if you can’t pay all your taxes by the due date.

1. Pay As Much As You Can And File On Time. You can pay online, by phone, or by check or money order. Visit IRS.gov for electronic payment options.

2. Use Your Credit Card Or Take A Loan To Pay. The interest and fees charged by a bank or credit card company may be less than IRS interest and penalties. For credit card options, see IRS.gov.

3. Pay Online. You don’t need to wait for IRS to send you a bill before you ask for a payment plan. The best way is to use the Online Payment Agreement toolon IRS.gov. You can also file Form 9465, Installment Agreement Request, with your tax return. You can even set up a direct debit agreement. With this type of payment plan, you won’t have to write a check and mail it on time each month.

4. Don’t Ignor. If you get a bill, don’t ignore it. The IRS may take collection action if you ignore the bill. Contact the IRS right away to talk about your options. If you are suffering financial hardship, the IRS will work with you.

5. File To Reconcile Advance Payments Of The Premium Tax Credit. You must file a tax return and submit Form 8962 to reconcile advance payments of the premium tax credit with the actual premium tax credit to which you are entitled. You will need Form 1095-A from the Marketplace to complete Form 8962. Failure to reconcile your advance payments of the premium tax credit on Form 8962 may make you ineligible to receive future advance payments.

If you do need to file and extension, click here: https://www.irs.gov/Filing/Extension-of-Time-To-File-Your-Tax-Return

There is not much time left – don’t wait any longer. You can visit https://www.irs.gov/ for more.

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