Get Started for a Free Consultation!


Debt Destroy

Tax Season Advice For Avoiding Tax Debt


Back Taxes Help Rep Points: 40
Posted on March 17, 2009 at 5:23 pm
  • Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} Here is some quick advice on avoiding getting in trouble with the IRS and potentially owing more money than you normally would.  With tax time here and the economy the way it is, many people will face the possibility of owing more taxes than they can actually pay. Here is some advice for those people that cannot pay the taxes they owe when they are due. 1)      File your taxes – Even if you know you will owe more taxes than you can pay, not filing will be the quickest way to get additional penalties tacked on that are unnecessary. The not filing penalty is higher than the not paying penalty. 2)      Consider your payment options – The IRS does allow you to pay on credit, but sometimes this is not the best method considering the high interest rates of credit cards. The IRS will suggest a payment plan.  The most common payment plan is an installment agreement where you will be allowed to pay the taxes back in monthly payments. 3)      Can’t qualify for Installment Agreement? – Look into getting classified as uncollectible until your financial situation improves.  If your financial situation is really bad, consider submitting an offer in compromise.   If you owe more taxes than you can pay it is important to take action soon because those IRS penalties and interest add up quickly and will greatly add to the total amount of tax you will owe to the IRS.    Please add anymore suggestions for dealing with a tax bill that you know you cannot afford.  Any questions on the topics, please don’t hesitate to ask.

  • sweetseoul Rep Points: 1,225
    Posted on March 28, 2009 at 7:45 pm
    you just have to pay you taxes on time. because if you don't..they have penalties and you have to pay extra :(