Options When You Can’t Pay Taxes
There are two steadfast rules to know when you are experiencing a financial hardship and are unable to pay your taxes by the deadline. The first rule is that you should get in touch with the IRS immediately; the second is that you should speak with your accountant at Practical Taxes to determine the best course of action going forward. Remember the most pressing business is to notify the IRS, because they have deadlines, and when you cannot meet those deadlines they have policies in place to charge you a penalty or, in the most serious cases, use legal power to enforce the collection of the payment. A financial hardship is nothing to be overly ashamed about; an unexpected financial difficulty can happen to anyone. Here’s a few things you should know if you do have a financial hardship this tax season…
The IRS offers ways to pay the tax debt, and the options for payment range from receiving an extension on the payment to entering into a structured payment plan. For the most serious cases, the IRS can offer a deferred payment or even a settlement of the debt, however these are special programs. Your accountant at Practical Taxes can help guide you through the repayment process; you don’t have to face the IRS alone, and your accountant may be able to determine if you qualify for a repayment program that could save you money. Before you enter into a repayment program, determine the amount you can afford to pay each month.
Of course, before you determine whether or not you’re able to afford to pay the tax owed, you need to first file your income taxes. Tax Day is quickly approaching; the deadline is only a few short months away. Remember, February and March are busy months at your accountant’s office, and it’s best to make your appointment early: if there are going to be any difficulties in the completion of your income taxes or if you are going to need to enter a repayment or similar IRS special program, then you will have the time to plan.
Good to know.