Can’t pay your taxes? Keep these 5 things in mind:

5 THINGS TO CONSIDER IF YOU CAN’T PAY YOUR INCOME TAXES

FILE A RETURN

File your return on time! There is no excuse not to, and if you don’t, you will incur penalties. Pay as much as you can when you file. This will reduce the amount of penalties and interest that will accumulate on the tax debt.

PAY BY CREDIT CARD

If you think you can pay within 120 days, then do so. There is no formal application for this, and you will still be incurring interest and penalties for late filing. You can even make tax payments by credit card. The IRS does charge a fee for payment by credit card.

ARRANGE AN INSTALLMENT

AGREEMENT

If you need more than 120 days, then you should ask for an installment agreement with the IRS to make monthly payments. Make sure that you can make each monthly payment or the IRS might consider your agreement to be in default.

CONSIDER AN OFFER IN

COMPROMISE

You can also apply for an offer in compromise to try to negotiate payment of an amount less than you owe. The IRS will only approve offers in compromise in specific situations, so be sure you qualify before you apply.

ASK FOR CURRENTLY NOT COLLECTIBLE

If none of these options fit, then you can work with the IRS to put your account into currently not collectible status. The IRS will not pursue payment while your account is in this status, but your tax bill is still being charged interest and penalties.

FOR MORE DETAILSVISIT

WWW.TAXDEFENSENETWORK.COM

OR CALL(800) 691-5390

Sonnenblick, Michael. “5 Things to Consider if You Can’t Pay Your Income Taxes.” AccountingWeb. Sift Media, 11 April 2016. Web. 25 April 2016. <http://www.accountingweb.com/tax/individuals/5-things-to-consider-if-you-cant-pay-your-income-taxes>