taxes

6 tax terrors and how to overcome them without therapy

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Afraid to file because I can't pay
Afraid to file because I can't pay | Hinterhaus Productions/Getty Images

Afraid to file because I can't pay

The only thing scarier than filing taxes is what could happen if you don't file.

The IRS penalty is 5 percent a month on any unpaid tax if you don't send in a return. File the return without taxes due, and you'll be charged one-half of 1 percent of the tax owed for each month.

The remedy: File on time. Then make arrangements to pay. That way you'll avoid taking that hardest penalty hit, which could reach a maximum 25 of any unpaid taxes.

If you can't afford to pay your full tax bill, send Uncle Sam at least a down payment. As for coming up with the rest of the tax bill, consider using a credit card; just use the card that has the lowest interest rate.

Find low-interest rate credit cards at Bankrate.

The IRS also has payment plans. Though these add interest charges to your tax bill, rates right now are low.

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