File Your Tax Return On Time

• Individual federal income tax returns are due each year on April 15, although the date may be extended slightly during years went April 15 falls on a weekend or holiday. The Internal Revenue Service advises all taxpayers to file their federal income tax returns by the due date even if they are not able to pay their taxes in full. The IRS can charge a tax penalty of five percent of the amount of taxes due for each month the tax return is not filed or an extension is not requested, up to 25 percent. The tax penalty for not filing a tax return is more severe than the penalty for filing a tax return but not paying the taxes in full.
  
  

Request Additional Time to Pay

• Individual federal income taxes are due to be paid by April 15. The taxes are due by this date even if the taxpayer is granted an extension for filing her income tax return. A taxpayer who is unable to pay her federal income taxes in full by the due date may contact the IRS and request additional time to pay her taxes in full. The IRS may grant an extension of 30 to 120 days. Penalties and interest may still be assessed against the amount owed, but the amount will typically be less than that charged to taxpayers who pay their taxes through an installment agreement.
  
  

Apply for an Installment Agreement

• A taxpayers who is unable to pay her taxes in full may apply for an installment agreement, which will allow her to make monthly payments to the IRS. Taxpayers who owe less than $25,000 in income taxes, interest and penalties may apply online for an installment agreement through the IRS Online Payment Agreement application. Taxpayers who owe more than $25,000 must apply in writing by completing IRS Form 9465 and include a complete financial statement.
  
  

Borrowing to Pay Taxes

• The IRS accepts tax payment made by American Express, MasterCard, Visa or Discover credit cards. Taxpayers may borrow money from traditional lending sources to pay their taxes. In some cases the interest charged on borrowed money is less than the interest and penalties charged by the Internal Revenue Service for late tax payments.