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Out of more than 143 million taxpayers, you might think the IRS has enough to worry about and will never notice if you pay your taxes late or fail to pay at all.
But no matter how busy the IRS gets during tax season, you will be penalized if you don't pay taxes. Interest and penalties will begin to accrue on the outstanding amounts when you don't pay what you owe by the due date.
As time goes on, the IRS may even seize a portion of your wages each pay period until the debt is settled.
If you don't owe, but rather are expecting a refund, you risk losing the money the government owes you. Taxpayers must file within three years of the return due date, or else they forfeit any cash the IRS owes them. The same rule applies to claim tax credits such as the Earned Income Credit (EIC).
In 2021, the deadline to file your 2020 taxes was May 17. If you haven't already filed, you should e-file today using an online tax filing program like TurboTax or H&R Block.
TurboTax
On TurboTax's secure site
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Cost
$0 to $290 federal, $0 to $55 per state
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Free version
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Mobile app
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Live support
Yes, costs extra
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Better Business Bureau rating
Once you determine how much you owe, you can set up a payment plan with the IRS. The service fees for setting up tax payment plans range from $0 to 149 and will include interest on the balance until the payment is paid in full. Plus, there is a non-payment penalty, up to a maximum of 25% of the unpaid tax amount, for paying late.
Learn more about IRS payment plans.
Other options to pay your taxes over time
U.S. Bank Visa® Platinum Card
Information about the U.S. Bank Visa® Platinum Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
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Welcome bonus
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Annual fee
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Intro APR
0% for the first 20 billing cycles on balance transfers and purchases
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Regular APR
13.99% to 23.99% variable
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Balance transfer fee
3%, minimum $5
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Foreign transaction fee
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Credit needed
Excellent/Good
Pros
- 20 months of no interest on balance transfers and purchases
- No annual fee
- Cell phone protection plan
Cons
- No rewards program
- 2% to 3% foreign transaction fee
- Balances must be transferred within 60 days from account opening
Intro 0% APR for 18 months
Citi® Double Cash Card
On Citi's secure site
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Rewards
2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
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Welcome bonus
No current offer
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Annual fee
-
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
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Regular APR
13.99% - 23.99% variable on purchases and balance transfers
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Balance transfer fee
3%, minimum $5
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Foreign transaction fee
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Credit needed
Good/Excellent
Pros
- 2% cash back on all purchases
- Simple cash-back program that doesn't require activation or spending caps
- One of the longest intro periods for balance transfers at 18 months
Cons
- No welcome bonus, so you can’t maximize rewards during the first few months of card opening
- Minimum cash-back redemption of $25
- 3% fee charged on purchases made outside the U.S.
- Estimated rewards earned after 1 year: $443
- Estimated rewards earned after 5 years: $2,213
Intro 0% APR for 15 months
Amex EveryDay® Credit Card
Information about the Amex EveryDay® Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
2X Membership Rewards® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X), 1X Membership Rewards® points per dollar spent on all other purchases
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Welcome bonus
Earn 10,000 Membership Rewards® points after you make $1,000 in purchases in your first 3 months
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Annual fee
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Intro APR
0% for the first 15 months on purchases, N/A for balance transfers
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Regular APR
12.99% to 23.99% variable
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Excellent/Good
Pros
- No annual fee
- Competitive intro period on purchases
- 20% extra point bonus when you make 20 or more purchases in a billing period
Cons
- 2.7% foreign transaction fee
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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May 22, 2021 at 08:35PM
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This is what really happens when you don't pay your taxes on time - CNBC
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