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It's Tax Day And Time Is Running Out

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    NEWSLETTERS

    TK
    Bloomberg via Getty Images

    Time to file your taxes is running out.

    People who wait until the last minute to file their tax returns likely owe money.

    The Internal Revenue Service expects about 12 million people to request extensions.

    Penalties for late filing apply only to people who owe money. The penalty for failing to file will cost a taxpayer about five percent of the person’s tax bill for every month late. The maximum penalty is 25 percent of a person’s original tax bill.

    If you need more time, you can file an extension. An extension gives taxpayers until Oct. 15 to file a return, but remember, it's an extension to file, not to pay if you owe money. If you owe money, you must send a check or pay online by April 15, Tax Day.

    Learn more on how to file for an extension by clicking here.

    If you have a big tax bill, the IRS accepts credit and debit cards, but there is a processing fee charged by the payment processor, not the IRS.

    Learn more about paying by credit or debit card by clicking here.

    Can't afford to pay all at once? The IRS offers payment plans. The government accepts monthly payments through an installment agreement online for anyone who owes $50,000 or less. Fees for setting up an installment agreement range from $43 to $120.

    Learn more about setting up a payment plan by clicking here.

    Some good news for taxpayers this year, you’re chances of getting audited are the lowest in years because budget cuts and new responsibilities are straining the IRS's ability to police tax returns.