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Owe a balance on your taxes?

If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. There are also alternative payment options to consider:

There are even options to pay online using a credit card. Charging your federal tax payment to a credit card offers a convenient way to give you some extra time to pay tax - no matter the balance due - via the terms of your credit card provider. You can also maximize credit card rewards by earning points, miles, or money back for every dollar you pay, depending on your card's reward program.

Pay by Credit Card

Here are two options to pay using a credit card:

1. Link2Gov Corporation: 1-888-PAY-1040 (1-888-729-1040), www.pay1040.com

2. Official Payments Corporation: Here is the key information for Official Payments:

To charge your taxes with Official Payments Corporation, visit www.officialpayments.com or call toll free 1-866-4PAY-TAX (1-866-472-9829).

American Express ®, Visa®, MasterCard®, and Discover® are accepted.

A convenience fee of 2.49% of the amount of your Federal tax payment will be charged for the use of this service. The convenience fee for state payments may vary. A $1 convenience fee will be charged for all tax payments less than $40.

The tax payment charge and convenience fee charge will appear separately on your credit card statement. The tax payment services will appear as "U.S. Treasury Tax Payment" and the convenience fee will appear as "Tax Payment Convenience Fee".

For high balance due payments, the charge will be broken into increments of $99,999 or lower depending on the institution that issues the credit card.

Extension of Time to Pay

Extension of time to Pay Based on the circumstances, a taxpayer could qualify for an extension of time to pay. The IRS is willing to offer extensions of time to pay in order to assist in tax debt repayment. A taxpayer can request an extension from 30 - 120 days depending on the specific situation. Penalties and interest incurred will be less through an extension of time to pay rather than seeking to enter into an installment agreement. Taxpayers qualifying for an extension of time to pay of 30 -120 days generally will pay less in penalties and interest than if the debt were repaid through an installment agreement.

Installment Agreement

Installment Agreement The IRS may allow you to pay any remaining balance in monthly installments through an installment agreement. To apply for an installment payment plan, attach a Form 9465, Installment Agreement Request, to the front of your tax return. Be sure to show the amount of your proposed monthly payment and the date you wish to make your payment each month. The IRS charges a $43 fee for setting up an installment agreement. You will also be required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month, after the due date that the tax is not paid. If you do not file your return by the due date -- including extensions -- you may have to pay a failure-to-file penalty.

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