What To Do If You Can’t Pay Your Tax Bill
Uncle Sam… Ready or not, here he comes! It’s tax time. For some folks it’s a welcome time of year when they anxiously await a tax refund. However, not everyone is in that coveted position.
Once you figure out how much money you owe, it’s time to take action. If you found that you owe the IRS more money than you are able to pay, it’s important to act quickly. Not filing a return is a felony and can land you in jail. The IRS is much more likely to work with you if you are proactive and have a plan.
Some options include paying your debt with a credit card or personal loan. Carefully weigh these alternatives and select the option with the least expense (i.e. interest rate). Although both of these choices may impact your credit score, not paying Uncle Sam is not a viable option.
Another consideration is entering into an installment agreement with the IRS. This type of arrangement allows you to pay back your debt over time. Seek the advice of a trusted IRS tax professional to learn more about the installment payment options.
Remember, paying your tax debt is required by law. If you don’t have a plan, the IRS will figure one out and will garnish your wages to get the money owed to Uncle Sam. It’s best to be proactive.
For more information regarding tax repayment options, please read this Fox Business article: http://www.foxbusiness.com/personal-finance/2014/02/14/what-to-do-if-cant-pay-your-taxes/