If you are concerned with getting your taxes filed in a timely manner, are still waiting for paperwork, or are facing other delays, you can request an extension on the standard tax deadline in mid-April. IRS form 4868 is available via your local library, accountant, and tax service or online at http://www.irs.gov/pub/irs-pdf/f4868.pdf .An extension of time to file does not provide you with an extension of payment due dates; however, procedures are in place to assist you by offering additional time or payment plans for paying your federal taxes.

If you have filed your taxes and owe more than you can comfortably pay, you have several options. Many taxpayers choose to set up an installment plan with the IRS. Visit http://www.irs.gov/businesses/small/article/0,,id=108347,00.html for further information on setting up a payment plan with the IRS. An installment plan and payments made in good faith will prevent damage to your credit if you are unable to pay your taxes in full.

The IRS does also make available to a few taxpayers an offer in compromise solution by which they will settle your tax debt. A number of services offer assistance with settling tax debt; however, the IRS warns that many of these services are overpriced and disreputable. Information about the IRS offer in compromise may be found at http://www.irs.gov/businesses/small/article/0,,id=104593,00.html . If you are in a position of having significant tax debt that poses a substantial economic hardship, exploring this option may be helpful.

How can you prevent tax problems? First and foremost, make certain that you are paying in a reasonable amount annually. If you have failed to set suitable withholdings with your employer, consider filing a new form W-4 and lower the number of deductions claimed. If you are self employed, make certain that you are making quarterly estimated tax payments and that those payments are adequate to cover your annual tax burden. Paying in enough through the year can spare you unpleasant surprises at tax time. If you expect to pay in on capital gains or other previously untaxed income, consider setting aside enough funds to cover the taxes when they come due. It is far better to overestimate your taxes than underestimate.

Significant tax debt can be a problem for many taxpayers, and one that can be hard to reconcile. Responsible money management includes making certain that your tax withholdings or estimated tax payments are adequate, or nearly adequate, to cover your tax burden. Tax time should not be one of worry and concern, assuming you have prepared well for this reality.