How To Handle a Tax Bill You Can’t Pay

handle a tax bill

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

Posted in

Video Conferencing – It Finally Works

Video Conferencing – It Finally Works By Harold German Remember those bulky, expensive video conferencing systems you would see in well-equipped conference rooms not too long ago? You know, the ones the office manager never allowed you to touch? Every now and then, you were invited to sit in on a video meeting and you…

Technology & Business Expansion: Matching Your Data Systems to the Business Growth

Technology & Business Expansion: Matching Your Data Systems to the Business Growth

Technology & Business Expansion: Matching Your Data Systems to the Business Growth By Dan Kaplan Fueling the high growth rate for Retailers, Manufacturers and Distributors is a flurry of mergers and acquisitions. In today’s world of mergers and acquisitions, and heavy usage of the Web, companies are facing a new reality. Software that meets the…

Simple rules for successful software technology outsourcing

Simple rules for successful software technology outsourcing

Simple rules for successful software technology outsourcing By Ramesh Manian The current economic climate, opportunities and round the clock service necessity requires most companies to outsource many technology projects to countries like India, China and eastern European countries. If you are a small software company, successful outsourcing is crucial to your development. For all the…

5 Ways a Document Management Service Can Improve Your Business

5 Ways a Document Management Service Can Improve Your Business

5 Ways a Document Management Service Can Improve Your Business Documents can be the bane of any businessman’s existence. Documents are a fact of life in the business world. From advertisements to legal contracts to protocols, from business plans to presentations to spreadsheets, almost every person in a business has some contact with a document.…