2. Explore Borrowing Options. If you are still short and find you must borrow the tax money, be sure to compare interest rates and terms to find the option that is right for you. Of the available options, be advised that you will pay interest on a bank loan, a processing fee and interest on an IRS installment plan and convenience fees plus interest to credit card companies.
3. File on Time or Get an Extension. If you need more time to file, the IRS does accept extensions on filing through April 15. However, keep in mind that a filing extension is not a payment extension and you will likely have to make at least a partial payment on April 15.
4. Lower Withholding Allowance. If you consistently owe income taxes, lower the number of withholding you are claiming or have your employer take an additional amount in taxes if you already claim zero on your W4. Depending on the amount you owe, a penalty could also be assessed for underpaying.
AICCCA: Founded in 1993, Association of Independent Consumer Credit Counseling Agencies is a national membership organization established to promote quality and professional delivery of credit counseling services. AICCCA and its members are focused on financial education, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, annually counsel millions of consumers nationwide and provide debt management services to consumers with excessive unsecured debt. To contact an AICCCA member agency, call (866) 703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org .
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