Question

If you owe taxes, which of the following is FALSE?

1) You can make a payment using cash
2) You can delay your payment deadline
3) With an agreement, you can pay it in installments
4) You can make a payment with a debit, but not credit card

Answer 1

The statement that you can make a payment with a debit, but not a credit card is FALSE. The IRS allows you to pay your taxes using cash, checks, direct debit, and both debit and credit cards. Extensions and installment plans are possible ways to manage payments. The correct option is 4.

Step-by-step explanation:

If you owe taxes, the statement "You can make a payment with a debit, but not a credit card" is FALSE. The Internal Revenue Service (IRS) allows you to make payments using several methods, including cash, checks, direct debit, and both debit and credit cards.

You certainly can delay your payment deadline by requesting an extension or an installment agreement if you cannot pay the full amount by the due date, which is typically April 15th. However, it is important to file for an extension before the deadline passes to avoid potential penalties.

Additionally, paying in installments is an option if you reach an agreement with the IRS for a payment plan. A tax refund happens when you have paid more taxes over the course of the year than you owe, and the government will send you the difference back.