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.
Think Big, Act Bigger | Jeffrey Hayzlett
About Jeffrey Hayzlett Jeffrey Hayzlett is a global business celebrity and former Fortune 100 c-suite executive. From small business to international corporations, he puts his creativity and extraordinary entrepreneurial skills into play, launching ventures blending his leadership perspectives, insights into professional development, mass marketing prowess and affinity for social media. Jeffrey is a leading business…
The Man Who Can Grow Your Business | Chris Kibarian
About Chris Kibarian Chris is a proven business builder and global P&L leader with a strong track record of accelerating profitable growth across technology-driven B2B information, software and services businesses. A performance-oriented leader, Chris is known for creating and executing winning growth strategies across Big Data, SaaS, mobile and analytic domains. Working across many…
Replacing The Rainmaker | Ian Tonks
About Ian Tonks Ian Tonks is a business development consultant and author of the book “Replacing the Rainmaker.” He provides coaching and consulting services to accounting firms, helping them implement practices to ensure their long-term business development success. Interview Transcript: Alan Welcome back. I’m here today with Ian Tonks. He’s author of the book…
Creating a Meaningful Life | Wally Hawley
About Wally Hawley Wally Hawley is a co-founder of InterWest Partners (1979), one of the larger venture capital partnerships in the United States, formed to make equity investments in diversified U.S. growth companies. His prior experience includes seven years as President of SHV North America Holding Corp., a wholly owned subsidiary of a Netherlands…