If you find yourself owing money to the government at tax time, there are a number of things you can do to avoid what could be one of the biggest mistakes of your life – failing to pay your taxes. The IRS will work with you to find ways to pay your taxes. Depending on your circumstance, you may be eligible for an extension, an installment plan, a temporary delay, or an “offer in compromise” agreement. Fees and interest might apply to extensions and installment plans.

A Tampa CPA from Reliance Consulting, LLC, might never be more useful to you as an individual or as a business owner than when you discover yourself short of cash when a tax bill is due. At such times, sound economic advice is crucial. The best way for most individuals to avoid a nasty surprise at tax time is to make sure the right amount of withholding is taken from each paycheck during the year, or that quarterly taxes are paid for freelance (form 1099) contract work.

However, there are times when a taxpayer just needs to find money right away to settle a tax bill. The following options might be less-than-ideal solutions, but may be preferable to the consequences of failing to pay your taxes altogether:

• Pay with a credit card – there are fees involved, including a “convenience” fee of 1.9 to 3.93 percent, depending on which service provider you use to make your payment
• Pay with a check attached to a credit card account – unless you’ve been offered a special convenience check rate by your credit card provider, interest on these checks might be exorbitant
• Take out a loan – if you borrow against your home’s equity, you may be able to deduct the interest on the loan, but you also place yourself at risk of foreclosure if you can’t make regular payments on the loan

Since Reliance Consulting opened its doors in 1984, we have helped thousands of individuals and hundreds of Tampa Bay area companies with efficient, comprehensive tax planning and preparation. Contact us today for sound tax advice from an experienced Tampa CPA.