IRS has more important tax information: What you need to know

Tax day is quickly approaching.

The deadline for filing taxes – at least for most people – is April 18. To avoid late filing and interest penalties, people have to submit their tax returns and any payments by that day.

But what do you do if you can’t file by that day or can’t make the payments?

The Internal Revenue Service has some advice and several different options to deal with the situations.

Here are some options:

Consider Free File

Eligible taxpayers who earned $73,000 or less in 2022 can take advantage of IRS Free File to submit their returns electronically at no cost. All taxpayers, regardless of income, who need more time to file can use IRS Free File as a way to electronically file for a six month extension before April 18.

What does an extension do?

An extension will help avoid penalties and interest for failing to file on time and gives taxpayers until Oct. 16 to file. It’s important to remember, however, that taxpayers must still pay what they owe by the April 18 deadline.

What should you do if you can’t pay full amount you owe?

If you can’t pay your entire IRS bill, the agency recommends paying what you can to reduce total penalties and interest. You can pay via the online IRS account to make same-day payments for any outstanding 2022 tax balances, pay quarterly estimated taxes or request an extension.

Interest and a late payment penalty will apply to any payments made after April 18.

More advice from the IRS

“The IRS encourages taxpayers who cannot pay in full to pay what they can and consider a variety of payment options available for the remaining balance including getting a loan to pay the amount due. In many cases, loan costs may be lower than the combination of interest and penalties the IRS must charge under federal law. Taxpayers should act as quickly as possible: Tax bills accumulate more interest and fees the longer they remain unpaid.”