There are times when you may be unable
to pay your taxes to the IRS, which could be due to several reasons. For the
most part, it isn’t a good thing to be on the wrong side of IRS, but tax
attorneys say that there is always a solution if you are genuinely unable
to pay your taxes on time. Here are a few pointers:
File
on Time
If you don’t have enough money to pay,
you must still file your tax return or else you will have to pay the penalty
for not filing. If you fail to file your tax return, the IRS personnel will do
it for you, but that will not include the deductions and exemptions you may be
entitled to. In addition, they are sure to send you a huge bill including the
tax due, interest, and sundry penalties and this is certainly when you need a
tax lawyer.
This type of legal help will be able to
negotiate better terms for you. This does not mean you should be on a boat
website looking for a new boat since you are going to have to pay something for
sure just perhaps not as much as you thought. You are in debt and you are not the
White House or Congress, you will have to pay back this money. You cannot just
print out money like The Fed does since that is fairy tale land which is the
world they live in.
Evidently, it saves you money to pay
taxes in full and on time. If you fail to file or are late in filing, interest
and penalties (sort of like The Sopranos and the mafia, you have to pay the
principle but probably not as bad as owing organized crime any money – there is
no legal help there) can add up and your tax bill can be 25% or even much more.
So if you can’t pay the entire bill, pay the maximum amount that you can spare
in order to reduce the interest and penalties as much as possible. Here are
some options open to you, if you are unable to pay your tax bill right away:
•
Request
more time to pay
•
Agree
to pay in installments
•
Loans
or savings
•
Offer
for compromise
When you ignore your tax bill, the IRS
will simply file a “Notice of Federal Tax Lien,” which will in effect ruin your
credit rating. They will dip into your wages and bank accounts or even take
away your assets in order to compensate for your tax debt. A tax attorney can
assist you if you have any questions. Some of the best in the business can be right
here on this digital tool: http://tax-lawyers.usattorneys.com/. If you need a legal representative for this horrendous
tax situation you are in, use that site to help get you on the right track.
Extension
of Time
You can apply for an extension to pay
your tax debt and the IRS may grant an extension of anywhere from 30 - 120
days, depending on your situation. The interest and penalties incurred by means
of an extension is usually less than if you choose the installment plan.
The
Installment Plan
You can request the IRS to offer an
installment plan and let you to remit your taxes in the form of monthly
payments. If your tax is $25,000 or less, you need to fill the OPA or Online
Payment Agreement from the IRS Web site. If you owe more than $25,000, you need
to complete a CIS or Collection Information Statement for the IRS to determine
the sum you should pay, depending on your expenses per month.
Savings/Loans
Another option is to borrow cash or use
your savings if you have any, to pay off your debt. Some tax lawyers recommend
that it is wiser to get a home equity or bank loan, or a credit card bearing
low-interest, than to ask the IRS for a payment agreement.
Offer
in Compromise
An “Offer in Compromise” is essentially
an agreement with the IRS to pay your tax debt for an amount that is less than
what you owe. This is dependent on…
•
Paying
the tax owed within the period the IRS must collect your tax debt
•
A
legitimate doubt about the tax assessed being correct
•
When
the collection of your tax debt will bring about severe economic hardship for
you
No comments:
Post a Comment