Late filing penalties accrue at a much faster rate than late payment penalties (0.5%/mo vs 5.0%/mo). So file your return on time or at least file an extension. Then you can either arrange to pay the balance later or request an installment plan.
Keep in mind that installment plans and deferred payment arrangements do not stop penalties and interest from accruing, so pay as quickly as possible. It may save you money to take out a personal bank loan to pay your taxes.
Also, pay your state taxes first. Penalties vary from state to state, but they tend to be higher than federal penalties and many states front-load their penalties (10% up front then 1%/mo).
Submitted March 29, 2018 at 11:00PM by Noctudeit https://ift.tt/2IgR83o
