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.
Immigration Law | Jake Lipman
About Jake Lipman Jake Lipman has practiced immigration law for over ten years. His practice focuses on employment-based immigration, counseling employers in complex immigration practice and policy concerns. Over the years, he has supported multinational and domestic organizations of all sizes and from every major industry. Jakob has lectured on immigration-related subjects in a variety…
Disruptive Business Education | Manoj Fernando
About Manoj Fernando Through his global work experience, including six Silicon Valley startups, Manoj has learned much about business and entrepreneurship — often the hard way. When he had the opportunity to teach Executive MBA students he realized he was lacking in real-life business education. In particular, the relevant basic building blocks of Silicon Valley’s…
Factors of Success | Leigh Perkins
About Leigh Perkins Hunting big game in India, Morocco, and Scotland, Orvis Chairman Leigh Perkins has dedicated his life to outdoor sporting pursuits. His passion extends well beyond mere participation, however; Perkins has been one of the sporting life’s great ambassadors, sharing his passion with everyone within reach, from working people to presidents. Under Perkins’…
Finding Success Through Mutual Commitment | Ken Blanchard
About Ken Blanchard An American author and management expert. His book The One Minute Manager has sold over 13 million copies and has been translated into 37 languages. He has coauthored over 30 other best-selling books, including Raving Fans: A Revolutionary Approach To Customer Service, Leadership and the One Minute Manager: Increasing Effectiveness Through Situational…