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
Are You Using Your Yacht as a Tax Deduction?
Are You Using Your Yacht as a Tax Deduction? Tax Deductions Who doesn’t like spending time out on the open waters enjoying all the many luxuries that yachts have to offer? While most people only dream of owning a yacht, for many of the world’s ultra-wealthy having a yacht is like having a second car:…
New Tax Savings for your Startup
New Tax Savings for your Startup Congress got something accomplished! In December of 2015, Congress passed the Protecting Americans from Tax Hikes (PATH) Act. Among other things, this Act makes a few important changes to the tax credit for research and development expenses that could have a significant impact on how you operate and plan…
Follow These Tips to Get Your Money’s Worth From Your CPA
Follow These Tips to Get Your Money’s Worth From Your CPA What’s the number one question you would ask an accountant if you ended up having a conversation with one? Can I deduct my pet food from my taxes? Will the IRS come after me if I don’t report “all” of my earnings? What’s the…
Hire a Pro or Do it Yourself – the Best Way to File Taxes
Does it feel like you just finished last year’s taxes? Well, believe it or not it’s almost time to do it again. Every year the tax laws and policies change, so each year you will have to be aware of these changes and additions. However, there are some things that never seem to change. With…