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
Car Collections: Collectors, Investors, or Dealers Status
Car Collections: Collectors, Investors, or Dealers Status Recently a 1936 Bugatti sold for over $30 million. Granted, that’s the world’s most expensive car, and one of only three ever built, but it raises an important financial question for car collectors. While acquiring beautifully restored antique cars may be someone’s high-octane passion, the IRS could see…
Feds and States Secretly Raising Tax Revenues
Feds and States Secretly Raising Tax Revenues Is the Administration out raising taxes without congressional approval? The surprising answer is a resounding YES. Receiving that notice that you are being audited strikes fear in the hearts of most people. For many, these tough economic times are about to get worse. Tax professionals from across the…
5 Leaderships Skills that will Bring Success
5 Leaderships Skills that will Bring Success Change is constant in a leader’s life. Leaders continually develop new ways in which to improve, accomplish tasks, and progress. These Leadership skills are essential for success. If you desire to become a leader and improve your skills, the following tips will guide you in your efforts: Think…
Lead Root Service
Lead Root Service Updated: 5/16/2013 What makes a good leader? Is it self-discipline, intelligence, the ability to inspire others, or is it something else? Perhaps a better question might be; what makes me a leader? Far too often we seek leadership qualities in others, only to be disappointed. Each morning, the mirror reminds us of…