Tax Tips If you find yourself owing taxes and are not sure how you will pay, consider the following:

• File on time. The penalty for failing to file on time is five percent per month of the balance owed. The IRS recommends filing your taxes even if you are unable to pay. If you truly can’t get it done by April 15, file for a four-month extension.
  
• Pay on time. The failure to pay on time penalty is .5 percent of the balance due per month. In addition, you'll incur interest on the balance due.
  
• Double-check your work. According to the IRS, even a small mistake can cause problems with your tax return, which might lead to delays in processing your return and receiving your refund.
  
• Start saving. By brown bagging your lunch or reducing other daily expenses, you may be able to save as much as $100 a week. This would enable you to save more than $600 before the big day.
  
• Get help. There are many institutions – including the government – who will loan you the money for a price. To request a payment plan, complete Form 9465, Installment Agreement Request, and attach it to the front of your income tax return.
  
• Change your W-4. Contact your company’s personnel department to reduce the number of deductions you claim or have extra money withheld so that you won’t be hit with the same surprise next year.