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
Conscious Leadership Institute | Cam Danielson
About Cam Danielson Cam is a partner at MESA Research Group and co-founder and principal at the Conscious Leadership Institute. His work focuses on assisting leaders and management teams to revision future direction and opportunity amid the turbulence of personal, organizational, and societal change. Cam has distinctive competence in delivery of mindfulness workshops, executive…
Authors that Inspire | Jeff Benedict
About Jeff Benedict Jeff Benedict is a distinguished professor of writing and mass media at Southern Virginia University. He is an award-winning investigative journalist, essayist, and a best-selling author. He is a contributing writer for Sports Illustrated, and his work has appeared numerously in the Los Angeles Times, and the Hartford Courant. Benedict’s books…
What’s Your Financial Plan? | Joe McKissack
About Joe McKissack Joe Mckissack has over 14 years of professional experience working in the financial industry as both a financial advisor and financial consultant. He specializes in working with clients of ultra high net worth. Joe received his Bachelor’s of Arts degree at University of California Santa Barbara. Interview Transcript: Alan Welcome back.…
Building a Foundation for Success | Mark Gottfredson
About Mark Gottfredson Mark Gottfredson is a partner of Bain and Company at the Dallas office, the office he founded in 1990. Mark’s client work is primarily focused on full potential programs, revenue enhancement, cost reduction, complexity management and major change programs. Mark is the author of The Breakthrough Imperative book, and has written extensively…