Tax Q&A: Expert Answers Your Questions

With just a few days to go before Uncle Sam demands your taxes be filed, it's time to sort out the fine print and get those 1040 forms in order. Need some help?

Tax and personal finance expert Kevin McCormally, who publishes daily tax tips on Kiplinger.com, responds to ABCNEWS.com users' questions for handling a variety of tax-related situations.

Question: What will happen if I send in my taxes and not send in my payment? — David

Answer: Believe it or not, the IRS will send you a bill. First of all, though, make sure you file by April 15 even if you can't pay. The IRS really does NOT like it when people fail to file, and there's a stiff failure to file penalty.

A better idea than waiting for the IRS to bill you though, is to include a Form 9465 with your return. That's a request for an installment payment plan. Millions of taxpayers are paying their bills in installment.

The form, which you can find at www.irs.gov, is amazingly unintimidating. You simply show what you owe, how much you're paying with your return and how much you can pay each month to pay off the balance. If you owe less than $10,000 and can pay it off in less than three years, it's almost sure to be approved. If you owe more or can't pay it off that fast, you'll wind up negotiating with the IRS over the payment schedule.

The IRS isn't a softie when it comes to tax debts, but it's not a loan shark either. You pay $43 to set up an installment payment (the IRS will include that charge with your first monthly payment) and you'll owe interest — the rate changes quarterly and is now 5 percent — plus a late payment penalty. That penalty is usually half of 1 percent a month (basically 6 percent a year) but it's cut in half — to one quarter of a percent a month — when you go on the installment plan. The combined rate of 8 percent is probably one of the cheapest loans you could get.

After you send in your return with the Form 9465, it will probably be a month or more before you hear from the IRS. Good luck.