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
Will Your Life Insurance Policy Be a Blessing or a Curse in Retirement?
Will Your Life Insurance Policy Be a Blessing or a Curse in Retirement? There are several ways to save for retirement. The most obvious path is to start an individual retirement account (IRA) or 401(k) and begin saving money every time you earn a paycheck. However, there are other effective ways to save for retirement.…
Is Your Withholding Setting You Up for a Painful Surprise?
Is Your Withholding Setting You Up for a Painful Surprise? It might still feel like tax time is a long ways away. But there is a very important step that everyone who receives a paycheck should take, right now. If you haven’t looked at your tax-withholding amount lately, then you really can’t afford to put…
Finally Some Good News Regarding Taxpayers’ Refunds
Finally Some Good News Regarding Taxpayers’ Refunds Remember the outcry about smaller tax refunds during the first few weeks of the tax season? Numerous reports detailed how so many taxpayers were shocked and upset about the size of their refunds. Even worse, some taxpayers were getting an additional tax bill. The complaints against President Trump’s…
Which Factors Play the Greatest Role in Determining Wealth?
Which Factors Play the Greatest Role in Determining Wealth? By Alan Olsen For most people, becoming rich is just a dream. Most people simply hope or wish to become wealthy, but never actually achieve this dream. If given the chance, everyone would choose to be wealthy, right? Who’s going to turn down huge amounts of…