Can't Afford Your Tax Bill? Here's What To Do
Have you recently filed your taxes and were surprised to discover that you owe the government money? This can be a stressful situation, especially if you're unsure of how you're going to be able to pay the full amount.
Are you unable to pay your tax bill? These are some of your options.
Pay Whatever You Can
One of the your first options is to pay the amount that you are currently able to pay. For example, if you receive a tax bill for $3,500, you might only be able to afford $2,000 right now. You can make a payment now and receive a notice from the IRS in the future. You may also be able to pay a portion now and send the rest at the end of the month, for example.
You May Get a Payment Plan
The IRS allows you to make a payment plan through the website, but you can also discuss payment plan options with a professional. You can arrange for a plan in which a set amount of money comes out of your account automatically on a specific day of the month. This allows you to pay off your tax liability for a year or so, lessening the burden. You can do this online or by calling the office.
Make an Offer
In some cases, you may be able to make an offer to the IRS to lower your tax liability. For example, the IRS might claim that you owe $4,000, but you might offer $2,000. You may eventually meet in the middle so that you owe $3,000, which can be a major relief if you are going through a financial hardship. You will set a deadline for when you have to make this payment.
Ask for an Extension
You can also request an extension on your taxes. In order to do this, you will need to get in touch with the IRS and inform them that while you are not able to pay your taxes right now, you will be able to do so in the future. You can set a date on which you will submit your payment.
Consult With a Tax Professional
A tax consultant can provide you with more information about the steps you need to take to cover your tax responsibility. Tax consultants see cases like yours all the time, and they can help you avoid penalties, interest, and other consequences. Contact a company that offers tax consulting services to learn more.
