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Tax Tips

By Emily Wood
 
March 26, 2010
 
MEDFORD, Ore. -- Tax season is nearing its end and many people are getting large returns.
 
For those who owe taxes, paying the government by April 15th can be tough, especially in today's economy.
 
Tax consultant Pat Hurley recommends payment plans.
 
"You can make payments for say $50 a month. They'll accept that. They will take as little as 25 dollars a month," Hurley said.
 
Tom Hawes owes less than $1,000 this year and is making $200 monthly payments.
 
"Working with the IRS now, they are a lot friendlier, they will work with you, they'll set up a payment system that will actually work for you and not against you," Tom Hawes said.
 
The IRS has a number of tips for people like Hawes who cannot foot the entire bill by April 15th.
 
First, double-check your taxes. Make sure your name is spelled right, your social security number is correct and all the math adds up.
 
Second, file on time. Even if you can't pay the entire bill, there are penalties for late filings.
 
Third, ask for a payment plan. The IRS will work with you to determine a monthly payment, and payments can also be made with a credit card.
 
Fourth, ask for an extension. You can delay paying your taxes for 6 months, but you must file for an extension before April 15th.
 
Fifth, ask for an offer in compromise. If all else fails, an OIC is an agreement between you and the IRS, allowing you to pay less than the full amount owed.