Are you expecting a hefty tax bill for 2025 that you can’t immediately pay? Don’t panic. First things first: File your tax return. The failure-to-file penalty can reach 25% of your unpaid tax. It begins accruing the day after the missed filing deadline, unless you requested an extension by that date. But you still may be subject to a failure-to-pay penalty and interest. The IRS offers short-term payment plans and long-term installment agreements. You may even be able to negotiate an offer in compromise to settle for less than what you owe. Each option has eligibility requirements and potential consequences to consider. Contact us to discuss the most effective strategy for you.
