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What You Need to Know to Avoid Tax Fees

Money you owe the IRS is subject to interest. Don't let interest and penalty fees add up. You may owe now, but paying sooner is much better than paying more later.


You haven't started your taxes and you're afraid to start the process...

Avoiding the problem will not make it go away. It's not fun. But it'll feel so good to check it off your list. If the process is so overwhelming that you are burying it then maybe you should seek the help of a professional and hand off all your tax related documents. If you're going to seek a professional's help, remember that tax season is very busy. It's always better to start as soon as possible.


If you know you're going to be late then you should file an extension. You can file an extension for free using IRS free file. Start here.


You've started your taxes and you realized that you owe money...

Pay as much as you can. Since money you owe is subject to interest, it's important to chip away at that bill. Leaving it unpaid will only make it bigger.


You can apply for a payment plan to spread out the cost over time. Learn more here.


You can e-file for free using IRS free file through October 6th, 2023.


Use your finished taxes to reflect on why you owed money to prepare for next year. Maybe you needed to withhold more money on your check or pay more estimated taxes for your small business. Maybe you had business expenses you could've deducted or charitable donations you forgot to mention. No one wants to pay a huge tax bill. Consider asking a professional what you could do differently in the future to reduce your tax bill.