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
Most Retirement Plan Dollar Limits Increase for 2007
Most Retirement Plan Dollar Limits Increase for 2007 IRS has announced the 2007 cost-of-living adjustments (COLAs) for retirement plans. Many of the limits applicable to pension, and other retirement plans, increase for 2007. For most of the limitations, the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Increased limits. The…
Banks Are Reaping the Benefits From Inversions
Banks Are Reaping the Benefits From Inversions Up until now, most of the attention regarding tax inversions has been put on the companies that have been choosing to make these deals. After all, it’s the companies that are saving a bunch of money on their taxes and supposedly cheating the U.S. Treasury out of more…
Simplified per-diem rates boosted for post-September 30 business travel
Simplified per-diem rates boosted for post-September 30 business travel Simplified per-diem rates boosted for post-September 30 business travel Rev Proc 2006-41, 2006-43 IRB Many companies use per-diem rates to reimburse their employees for business travel expenses rather than requiring employees to submit receipts for their expenditure. The IRS recently increased the simplified per-diem rate (high-low…
A Creative Plan to Help Lighten Your Tax Load
A Creative Plan to Help Lighten Your Tax Load Everyone likes to save as much as they can on their taxes every year. Of course, this is a noble goal and everyone should be doing exactly that. Likewise, everyone likes to keep his or her tax return as easy and simple as possible, which is…