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
Jenny Oaks Baker

Jenny Oaks Baker- Developing Talents

About Jenny Oaks Baker America’s Violinist, Jenny Oaks Baker is a Grammy Nominated, Billboard No. 1 performer and recording artist. She received her Master of Music degree from the renowned Juilliard School in New York City and her Bachelor’s Degree in violin performance from the Curtis Institute of Music in Philadelphia. She has performed as…

Shane Greenstein; How the Internet Became Commercial: Patterns in the Deployment of Technology | Shane Greenstein

How the Internet Became Commercial: Patterns in the Deployment of Technology | Shane Greenstein

  About Shane Greenstein Shane Greenstein is a Professor of Business Administration at the Harvard School of Business and is the MBA Class of 1957 Professor of Business Administration. Professor Greenstein is also co-director of the program on the economics of digitization at The National Bureau of Economic Research. Professor Greenstein is the author of…

Approaching Star Trek Like Medical Technology | Joseph Deluca

Approaching Star Trek Like Medical Technology | Joseph Deluca This is just a short excerpt from the original interview, found “Here“. It contains over 23-minutes of interview along with a full transcript. We hope you enjoyed this excerpt form the interview of Joseph Deluca “Approaching Star Tek Like Medical Technology”. To receive our free newsletter,…

The Future of Healthcare | Joseph Deluca

  About Joe DeLuca Joe has 30+ years of management, research, and advisory experience in health care, with a focus on enterprise performance management and affecting change through IT strategy and services. As Managing Practice Director, Joe provides advisory, project management, and leadership development services to health systems, hospitals, academic medical centers and independent physician…