If you can’t pay the back taxes that you owe to the IRS, you’re probably spending a lot of time stressing about what you’re going to do and what the potential consequences are. If you’re reading this, one thing you’ve probably realized is that burying your head in the sand and pretending your IRS tax debt will go away is not a valid strategy. The IRS is one of the most powerful and aggressive creditors out there, and unfortunately they won’t be forgetting about the taxes you owe any time soon.
At Abajian Law, we’ve put together an action plan if you find yourself with an IRS tax bill that you’re unable to pay. Read on:
As mentioned before, the longer you wait to address your tax debt problem, the worse it becomes. Penalties and interest begin to accrue and pile up, not to mention the toll that an unpaid IRS tax bill takes on your everyday stress levels. Many times, our clients are most worried about the fact that they haven’t filed tax returns for certain years at all. Leaving those returns unfiled won’t solve anything, so step one is to make sure that you at least get your returns in. Who knows – you might think you owe a substantial amount of taxes, but your tax professional may be able to secure you a refund instead! Either way, there’s no moving forward without completing this very important step.
After your returns are filed and you’ve done everything you can to minimize the amount you rightfully owe, you may still find yourself staring at a large tax bill from the IRS. If that’s the case, you need to take a hard look at your finances and determine how much you are able to pay right now. If you can pay the whole thing right away, great! Bite the bullet and transfer the money to the IRS, secure in the peace of mind you’ve gained from knowing that you no longer owe the IRS a dime.
If you can’t pay the full amount right then and there, it’s time to look at other alternatives for paying your back taxes.
The IRS offers some flexibility when it comes to taxpayers who want to make good on their tax debt, but can’t afford to pay it all off at once. Consider options such as an Offer in Compromise, a monthly payment plan, or being declared Currently Not Collectible by the IRS. These options will allow you the flexibility to either pay a lump sum that is less than the total debt, pay the full amount but spread over several months, or defer your payments until you are financially able to start making a dent.
As always, if you have questions about tax relief and are worried that you can’t pay the IRS, you can contact the experienced tax attorneys at Abajian Law for a no-obligation consultation today.