Tax filing deadlines roll around every year. There is no avoiding them. What happens if this year you just don't have the money to pay the obligation you owe to the IRS? There is only one thing to do -- you have to pay it. Regardless of whether you can afford to pay your tax obligation, not filing your taxes opens you to the possibility of the IRS being able to file not one, but two penalties against you -- a non filing penalty and a penalty on the money you owe. Even if you can't pay your whole tax obligation you need to make an attempt to pay the IRS a portion of the total amount owed. If there is no where you can go to get money to pay what you owe to the IRS in full, making at least a partial payment lets the IRS know you are making an attempt. Keep in mind that paying a portion of your total obligation lowers the back-end amount you'll owe and will also help lower the amount of penalties and interest that are assessed. If you want to avoid a possible IRS audit, it also helps to file your taxes on time and to make an attempt at payment by the tax filing deadline.
Do you have any family members or friends who might be willing to offer you a loan to pay off your IRS obligation? If so, you should turn to them before the tax filing deadline hits so you can pay your bill when it's due. You will probably be able to negotiate a lower interest payment with them than with the IRS. Additionally, look to your credit cards and see if you have enough of a credit line on them that you can use to pay your tax obligation. Check to make certain the interest rate you're charged on your cards is advantageous though. Some people look to their home mortgages or credit lines to pay their tax obligations. If this might be an option for you, talk to a tax professional to see if this is a good way for you to go to pay your tax obligation.
Talk to the IRS. This should be one of the first things you do; talk to an IRS agent. They may be willing to enter into an installment agreement with you. You would be able to make payments over time to address the money owed. If you owe less than $25,000 you can apply for an installment agreement online. If you're suffering a severe financial hardship that doesn't have an end in sight, the IRS may agree to temporarily suspend collection actions against you. They will still add penalties and interest to the amount owed but they may cease efforts to collect.
If you're unable to come to an agreement with the IRS on an installment payment plan for the money owed, consider requesting an Offer in compromise. This OIC is an agreement made between you and the IRS that helps resolve your tax liability by a payment of a reduced amount to the IRS. Bear in mind though, that many of the OICs are rejected by the IRS. And you will still be out the money you paid to file the forms. It's better to talk to a tax professional before undertaking this filing option.
Remember, no matter what direction you take, you can't avoid the IRS and the money that you owe. You need to face your obligations head on as they will not go away. Talk to a tax professional as a way to face the obligations and avoid an IRS audit.
Do you have any family members or friends who might be willing to offer you a loan to pay off your IRS obligation? If so, you should turn to them before the tax filing deadline hits so you can pay your bill when it's due. You will probably be able to negotiate a lower interest payment with them than with the IRS. Additionally, look to your credit cards and see if you have enough of a credit line on them that you can use to pay your tax obligation. Check to make certain the interest rate you're charged on your cards is advantageous though. Some people look to their home mortgages or credit lines to pay their tax obligations. If this might be an option for you, talk to a tax professional to see if this is a good way for you to go to pay your tax obligation.
Talk to the IRS. This should be one of the first things you do; talk to an IRS agent. They may be willing to enter into an installment agreement with you. You would be able to make payments over time to address the money owed. If you owe less than $25,000 you can apply for an installment agreement online. If you're suffering a severe financial hardship that doesn't have an end in sight, the IRS may agree to temporarily suspend collection actions against you. They will still add penalties and interest to the amount owed but they may cease efforts to collect.
If you're unable to come to an agreement with the IRS on an installment payment plan for the money owed, consider requesting an Offer in compromise. This OIC is an agreement made between you and the IRS that helps resolve your tax liability by a payment of a reduced amount to the IRS. Bear in mind though, that many of the OICs are rejected by the IRS. And you will still be out the money you paid to file the forms. It's better to talk to a tax professional before undertaking this filing option.
Remember, no matter what direction you take, you can't avoid the IRS and the money that you owe. You need to face your obligations head on as they will not go away. Talk to a tax professional as a way to face the obligations and avoid an IRS audit.
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