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.
A Look Ahead: The Venture Capital Industry of the Future | David Silverman
“A Look Ahead: The Venture Capital Industry of The Future”, David Silverman transcript, interview by Alan Olsen, Host of the American Dreams Show: David brings more than 15 years of experience working with technology businesses as a venture capital investor and investment banker. Prior to joining Crosslink, David was a partner at 3i Ventures, a…
Robert Zuccaro – How Wall Street Reshaped America’s Destiny
Robert Zuccaro interview transcript, “How Wall Street Reshaped America’s Destiny”: Alan Olsen: In 2011 thousands of people gathered in the New York’s Financial district the to protest. The movement became known as, Occupy Wall Street. At the time, the economic collapse of 2008 as well as the huge government bail outs were fresh in the…
What Topics Should One Avoid While At Work?
Topics to Avoid at Work Have you ever been around a person who feels like he or she needs to tell you everything about themselves? Someone who reveals way too much personal information, can make others feel uncomfortable. We all have many sides to our lives and our personalities, and some people are more open…
Robert Wood – Founder of Wood LLP
Robert Wood, Founder of Wood LLP interview transcript: Alan Olsen: A lot of time Personal Injury Lawsuits are taken on a contingent fee basis. When a person is awarded great lawsuit settlement, oftentimes after the attorney takes their fee from the lawsuit settlement a the plaintiff gets a tax form in the mail saying they…