Options if I Cannot Pay Taxes

By Matt Robinson Not being able to pay the taxes you owe is probably a more common situation than you realize. Ever year there are literally thousands upon thousands of people that are in similar shoes as you. Although this is a bad spot to be in, it is not the end of the world. There are many ways that you can better your situation. The IRS actually is willing to work with you to find a solution. The IRS has been dealing with situations like this for years and have made various types of resolutions to try to match every taxpayer in any type of financial situation. It is important to understand your various options so you can resolve your taxes in a way that benefits you financially. Here are four options to consider if you cannot pay taxes: 1. Installment agreement. You may not have enough money to pay your taxes in one lump sum – this is common. The IRS knows this, so they offer the ability to pay your debt over an extended period of time. In most cases, the longest period of time that you will be granted is 60 months or five years. This is a good option for taxpayers that have stable jobs or income, but just don't have enough to pay off the taxes in full on the due date. This is the most common method for taxpayers to pay back taxes if they can't pay in full and it is one…

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What if You Can't Pay Unpaid Taxes?

By Matt Robinson Owing the IRS money can weigh on your mind. Even if you do not have the cash to pay your unpaid taxes, you must still look around for a solution. The IRS is not going to let you slide for very long. And if they do, they will be charging you penalties and interest along the way. Do you really want to add more money to your balance? Probably not. There are many ways to satisfy your tax debt even if you cannot afford to pay all at once with a single cash installment. Do you have a credit card? The IRS allows you to pay your unpaid taxes with an American Express, Discover, MasterCard or Visa. For some, this is the best thing imaginable. They can get out of hot water with the IRS, and simply pay off their credit card bill over the course of many months. If you want to take advantage of this option you will need to use one of the following services: Link2Gov Corporation or Official Payments Corporation. Either way, you can pay your unpaid taxes with a credit card instead of cash. What about borrowing money from friends and/or family? This is often times the best way to get the money you need to pay the IRS. The reason this is a good idea is because you can usually avoid interest. Obviously, it makes most sense to find a family member or friend who will lend you the money and…

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The IRS Solution If You Cannot Pay Your Taxes

By Richard Chapo The Internal Revenue Service wants you to pay taxes on time. That being said, it understands this is not always possible and has created a program for such situations. The IRS Solution If You Cannot Pay Your Taxes The Internal Revenue Service is very upfront about its goal in dealing with taxpayers. While it obviously wants to collect all taxes due, it is also focused on keeping you in the system. This attitude is a relatively recent change undertaken in the 1990s. The IRS essentially determined it made better financial sense to have you in the system versus spending hundreds of man hours hunting you down. In practical terms, this means you need not have a panic attack if you do not have sufficient funds to meet your tax obligation. If you panicked this past tax deadline, there was no need. The IRS will put you on a payment plan if you cannot pay your taxes on time. The plan calls for monthly payments like a car loan, to wit, they are an equal amount each month so you know what you are obligated to pay. You are only eligible for a payment plan if you file a tax return. Once you file, you want to use form 9465 to request the payment plan. It costs $43 to file the application. The IRS will then get back to you on what it is willing to do. The payment plan process is not an audit. Millions of people…

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