What Do You Do When You Owe Taxes But Don’t Have the Funds?
For many people tax season brings the joy of a nice big refund to go out and splurge on something they’ve had your eye on for a long time. On the flip side of the equation are those people who surprisingly, or not, end up owing the IRS money. Not only do these people miss out on the extra cash influx, but they also have to come up with the funds to pay off the extra tax bill.
For some people, depending how high the bill is, they could have to pay even more than just the shortage amount. That’s because many times when people underpay they end up owing penalties for the underpayment. For those who owe a lot of money, those penalties could end up being huge. In fact, the penalties can even be much higher than the shortage.
That’s why it’s always best to try to avoid owing any money to the IRS, especially if you don’t have the funds to pay it off when the tax bill comes due. So what happens to people who can’t pay their tax bill? You do have a few options.
In some cases, it might be a good idea to take out a loan or a line of credit in order to pay off the bill. Of course, you will then be responsible to pay off the loan, so use caution. Another option is to apply for an extension with the IRS. This could buy you a little time to come up with the needed funds. If you need even more time then try applying for a hardship extension, which could give you up to six months to pay it off. You could also ask the IRS for permission to set up a payment plan to pay off the debt in installments.
Whichever path you decide to take, make sure you do something. Don’t ignore the problem or it will only get worse. The penalties will likely increase the longer you wait and the IRS could eventually take other measures or even press charges. So the bottom line is: do something.
How Much Are U.S. Companies Paying in Corporate Taxes?
It’s no secret that the nation’s wealthiest individuals pay the most in taxes, but did you know that the United State’s corporate tax rate is also among the world’s highest? According to a report from Accounting Today, accounting and consulting firm UHY, says the U.S. corporate tax rate is 41.1 percent. That represents a much…
Succeeding Against All Odds
Just about every startup business or entrepreneur faces tough odds, which at certain points can seem almost insurmountable. Achieving success is always gratifying, but when you achieve success against all odds, that satisfaction can feel even greater. Being able to overcome huge odds and obstacles is never easy, but many people have what it…
How to Create a Common Dream
Updated 12 8 20. All companies are out to achieve success. Success can be defined in different ways, but in most cases, companies define success by results. Many companies have mission statements, common dreams – or goals – that they use to motivate their workforce or to define their purpose. These statements are also often used to define success. Mission statements can be a…
High Property Taxes Pushing Many New Yorkers to Relocate
Recently I posted a report that the number of wealthy individuals leaving Connecticut for more tax-friendly pastures has been increasing. It seems that Connecticut isn’t the only state that is facing this problem. According to a report in the Democrat and Chronicle, New York is also dealing with more people leaving due to high…