15 Apr Can’t Pay The Tax Bill? This Is What You Need To Do
Facing a tax bill that you can’t pay can be a stressful and overwhelming situation. However, there are steps you can take to address the issue and avoid penalties and interest charges.
First and foremost, it’s important to file your tax return on time, even if you can’t pay the full amount owed. Failing to file your tax return can result in penalties and interest charges, which will only add to the amount you owe.
Next, contact the IRS to discuss your options for paying your tax bill. The IRS offers several payment options, including installment agreements, which allow you to make monthly payments toward your tax debt. To qualify for an installment agreement, you will need to provide financial information to the IRS and agree to certain terms and conditions.
Another option is to request a short-term extension of time to pay. This option allows you to delay your payment for up to 120 days, giving you more time to come up with the funds to pay your tax bill.
You can also consider requesting a hardship status, which is a temporary postponement of collection action. This can help you to resolve your financial difficulties and to pay your taxes in full.
If you’re unable to pay your tax bill and don’t qualify for any of the above options, you may be able to settle your debt for less than the full amount owed through the Offer in Compromise program. This program is only available to taxpayers who can prove that they’re unable to pay their tax debt and that the offer is the most the IRS can expect to collect within a reasonable period of time.
It’s important to note that any of the options for paying your tax bill will require you to file your tax return and to continue to file and pay your taxes on time in the future.
It’s also important to seek professional help in case you are unable to resolve the issue yourself. You can seek assistance from an enrolled agent, a CPA or a tax attorney who can help you to navigate the process and to find the best solution for your situation.
If you can’t pay your tax bill, it’s important to take action as soon as possible to avoid penalties and interest charges. There are several options available to help you pay your tax debt, including installment agreements, short-term extensions, and hardship status. If you’re unable to pay your tax bill, it’s best to seek professional help to find the best solution for your situation.