What Should You Do if You Can’t Afford to Pay Back-Taxes?
Paying taxes is no fun. Owing back taxes and not being able to pay them is much worse. Many people get into tax trouble when they end up owing money to the IRS and they don’t have the means to pay it off. This can cause a lot of stress, anxiety and even fear or panic. However, you shouldn’t panic. The IRS won’t show up at your door with the police ready to take you away in handcuffs.
If you do end up owing back taxes and you can’t pay them off all at once, you have some options. That’s because the IRS is willing to work with you, so long as you are willing to work with them. The first thing you should do, is file your return on time, even if you know you don’t have the money to pay off your tax debt. This will help you avoid additional late-filing penalties.
Pay as much as you possibly can when you file your return. If you just need a little more time then you can file for a short-term extension in order to pay off the remaining debt within 120 days. If it is going to take longer, then apply for a monthly payment plan with the IRS. It’s best to set up an automatic monthly payment plan. There will likely still be interest and some penalties but they will be much lighter.
The IRS wants you to be able to pay your taxes and they are willing to work with you if you keep up your end of the agreement. You can learn more about paying off back taxes by clicking here.
Doing the Tough Things First | Ray Zinn
About Ray Zinn Ray Zinn is a co-founder of the Company Micrel and has been its President, Chief Executive Officer and Chairman of its Board of Directors since the Company’s inception in 1978. As our Chief Executive Officer, Mr. Zinn gives the Board of Directors insight and in-depth knowledge of the semiconductor industry and…
Todays China | Nicholas Hope
About Nicholas Hope Nicholas Hope is the Director of the Stanford Center for International Development (SCID). He also directs SCID’s China research program. His current research is private enterprise development in China and progress of reforms in China, especially in the financial sector. His interests are in East Asian economies, especially China and Indonesia,…
Why Are True Leaders Rare? | Jonathan Coslet
About Jonathan Coslet Jonathan Coslet has been with TPG Capital since it started in 1993. Currently he is the firm’s Chief Investment Officer and serves on TPG’s Executive Committee. Jonathan graduated Valedictorian from the Wharton School of Business where he received his Bachelor’s of Science in Economics and Finance. He received his MBA from…
Silicon Valley’s Bubble- What Happens When It Bursts? | Montgomery Kersten
About Montgomery (Monty) Kersten Montgomery Kersten serves development-stage companies as an independent board member, investor and advisor. Mr. Kersten was the co-founder & CEO of VitalSigns Software (later acquired), and serves as the independent board member of Silicon Valley private companies. He has worked for 35 years as an executive in sales, marketing, business…