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.
Hope For America | Bob Bennett
About Bob Bennett Former Senator Bob Bennett is the chairman of Bennett Group International, a private business and governmental consulting group he founded after leaving government service in 2011. As a U.S. Senator from Utah, he was a senior member of the Senate Banking Committee and a member of the distinguished Joint Economic Committee.…
Are You Ready For Retirement? | Jason Greenwood
About Jason Greenwood In 1999 Jason started his career in the financial services industry. While at Fidelity Investments he learned the importance of diversification and how to trade effectively. As an options trader for Client Services he became adept in the stock and derivatives markets. Desiring to become more involved with clients portfolios, Jason…
The Science of Immunology | Dr. Benjamin Chen
About Dr. Benjamin Chen Dr. Benjamin Chen is the CEO and Chairman of Immune Targeting Systems (ITS), a company in the field of Immunology which is dedicating to creating vaccines for viral infections. During his career Dr. Chen has worked as a scientist, banker and entrepreneur. In addition to his duties at ITS he…
The Servant Leader | Michael Gibbons
About Michael Gibbons Michael Gibbons is the director of student support and an adjunct instructor of family and child development at Southern Virginia University. He has held that position since August of 2003 and also teaches courses in family and child development and in social and behavioral sciences. His BS degree is in developmental…