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
What’s the Difference Between Tax Avoidance vs. Tax Evasion?
“I love paying taxes!” said no one ever! The truth is given a choice everyone would most likely keep their hard earned money rather than give it to the government. Unfortunately, taxes are a part of life and almost no one is exempt. However, figuring out how to pay fewer taxes is practically a national…
Yacht Owners Feeling the Tax Pinch in French Riviera
Yacht Owners Feeling the Tax Pinch in French Riviera The French Riviera is one of the most popular waterways in the world for high net worth individuals. Luxurious yachts dot the docks up and down these waterways, as some of the world’ wealthiest enjoy spending time basking in the sun. However, all is not perfect…
Do Canadians Get Their Money’s Worth With Taxes?
Do Canadians Get Their Money’s Worth With Taxes? For those in the U.S. who oppose high taxes the truth is compared to some other countries, most Americans don’t have it too bad. In fact, when compared with the other 34 countries that make up the Organization for Economic Cooperation and Development (OECD), the U.S. comes…
The Fight for Tax Reform Will Be Long and Arduous
Is it starting to feel like the process to simply put up a new stop sign in the Nation’s Capitol would take an act of Congress? These days nothing is simple in Washington and when it comes to tax reform the battle will be anything but easy. When President Trump took office it was widely…