How To Handle a Tax Bill You Can’t Pay
How To Handle a Tax Bill You Can’t Pay
What could be more chilling than receiving a notice from the IRS that you owe a huge tax bill? The answer: the realization that you don’t have the money to pay off said tax bill. So what should you do if you find yourself in this situation? There is hope.
First off, never ignore such a situation and just hope that it will go away. That won’t work. Instead, face it head on. A good place to start is to contact a tax professional. The IRS does offer several options for people in this situation, but you might not know which is the best option for you. Therefore, meeting with a tax pro is usually a good idea.
The IRS actually offers several payment options for taxpayers in the hole, if they qualify. You can go ahead and pay it off directly from your bank account via IRS Direct Pay. You can also petition the IRS for an installment agreement wherein you agree to pay off the debt monthly. You can request an offer in compromise, as well, which if accepted could lower the amount you have to pay back.
However, as mentioned you must qualify for this option and part of that includes having debt and penalties of $50,000 or less, combined. No matter which payment method you choose you should do everything you can to pay off your debt in full as quickly as possible. The longer you delay payment the stiffer the penalties and the interest will get
Want to learn more? Contact us
Follow GROCO on Facebook
News letter
News letter Keeping abreast of the latest tax and wealth building tips is a time-consuming process for the successful individual. That’s why the GROCO Weekly delivers content directly to your inbox, saving you the trouble of scouring the net yourself. It is an electronic magazine (ezine) that features wealth-building tips and tax articles from some of…
Make Your Children Investors While They’re Young
Make Your Children Investors While They’re Young As an investor, you’re likely to have learned any number of valuable lessons over the years. Some came from observation, some from experience. Why not share some of your life lessons with your children, helping them become knowledgeable investors at an early age? Here are four ideas with…
Plan Now to Get Full Benefit of Saver’s Credit
Plan Now to Get Full Benefit of Saver’s Credit Plan Now to Get Full Benefit of Saver’s Credit, Tax Break Helps Low- and Moderate-Income Workers Save for Retirement Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2007 and the years ahead, according to the…
Succession Planning for Business Owners
Succession Planning for Business Owners “How can I arrange for the transfer of my business when I retire and yet be able to keep peace in the family?” That’s a common question asked by owners of successful businesses when the time comes to turn over the reins to the next generation. And, although there are…