During tax season many people expect to receive a refund, but there may be certain circumstances in which you may owe money to the IRS.
If you don’t pay your tax in full when you file your tax return, you’ll receive a bill for the amount you owe. If you can’t pay that amount in full, you can arrange a payment plan with the IRS.
A payment plan is an agreement with the IRS to pay the taxes you owe within an extended timeframe.
Ray Maagero of Liberty Tax told 22News more people may be owing money to the IRS this year due to the new tax laws.
“There is a limit of state and local taxes of $10,000. Whereas, in the prior year, you may be able to deduct that,” said Maagero. “If your deductions go down taxes will go up.”
You may get charged with fees depending on the payment plan you choose. You will not be charged any fees if you choose a short-term payment plan that promises you pay what you owe within 120 days or less.
If you choose a long-term payment plan, you will be charged either $31 if you apply for your plan online or $107 if you apply by phone or in-person.