You just finished preparing your taxes for the year, and you’ve found out that you owe more than you can pay. What if you can’t pay your taxes? While this can be a scary situation to be in, you have a few options. Read on to learn more about what you should do if you can’t pay.
First, you need to make sure you still file your taxes. You will get handed a penalty from the IRS if you end up filing late. Pay as much as you can afford, because what you can’t pay will be charged interest. If you are able to take out a loan or use a credit card, these interest rates may be less than what the IRS will end up charging you.
In addition, the IRS will allow you to work out a payment plan, so you can make monthly payments to pay off your taxes. You can do this on the IRS website, or by check monthly, but whatever you do, don’t ignore a tax bill from the IRS. They can legally take collection action if you decide to ignore the bill.
If you find yourself in this type of situation, it’s easy to feel overwhelmed and out of control. While the IRS will work with you if you’re experiencing financial hardship, it can still be confusing. It’s good to have support and a helpful team on your side. That’s where Civic Tax Relief can help. CTR will help you understand your options when it comes to tax debt and will guide you through your dealings with the IRS, so you don’t have to feel alone in the experience.
If you are having trouble paying your taxes this year, our tax advisors can help you resolve any issues quickly and professionally so that you can have the peace of mind you deserve.