Here’s What To Do When You Can’t Pay Your Taxes

Posted by Longman & Van Grack LLC on October 31st, 2019

Every year tax season comes as a stressful task but it becomes difficult for people who can’t afford to pay their taxes. If you are among these people, you, fortunately, have some of the best ways to tackle the unmanageable tax obligation. We know it looks you cannot but maybe these ways from the top tax attorney Rockville can help make it economical.

While the best approach depends on the time you will take to get that cash, short-term solutions are always better than others such as people with serious financial problems.

This is what you can do if you can’t clear your tax bills.

  • File a return regardless of all financial problems

  • In case you need 30 days or less to raise the money, wait for a bill and pay with 0.5% monthly fee

  • In case you need 30 to 120 days to raise the money, get a 120-day extension and pay with 0.5% monthly fee and 4% APR

  • In case you need 121 or more days to raise the money, consider to pay with a credit card or get an installment agreement

Tips To Consider When You Can’t Pay Your Taxes

Don’t Hide: Let’s face it, hiding has hardly worked well for anyone. There are no cracks to slip through. Moreover, the IRS has a history of working well with people who come out straightforward with their inability to pay taxes. So, file your return by the deadline of April 15 even if you cannot meet the tax obligations and open up with IRS regarding your current financial status. 

File a Return Regardless of the Situation: If you don’t know, IRS charges separately for failing to file the tax return and failing to pay the taxes. With the financial crisis, you wouldn’t like to pay fees for both of them.

Leverage Free Advice: If you’re on this page reading about your options, you are already on the right track. Never stop exploring options. You live in a digital age and you can get tons of information about tax filing online. Leverage free advice from several experienced lawyers and accountants. You can also get help from IRS-certified volunteers from nationwide programs including TCE, VITA, Tax-Aide, and AARP.

 

Beware of Scams: There are as many scams going on as genuine tax attorneys are working. You will find several businesses promising miracles on your situation or any severe tax problem. Never let these too-good-to-be-true situations trick you. Do your research before enlisting the services of any tax attorney Maryland.

Reevaluate Withholdings: It is not okay to assume that deductions were accurate from your wages if you have a large tax bill in April. In simple words, maybe your employer was paying you a fine salary (with fewer deductions) due to which you have a large tax bill. 

You can fix this with a new Form W-4 that allows you to apply for fewer allowances to your employer. It will make your paycheque smaller but you will have a smaller tax bill too. It also makes you eligible for a refund. 

Improve Your Financial Planning: If you owe money to the government, it is because either you had bad financial planning or you didn’t plan at all. If you have a chance to make the next year better, don’t let it go. Spend only on necessities and nothing else. Keep track of each dime you spend. With positive habits, you will start saving a good amount of money and it will help you pay the IRS as quickly as possible starting next year. 

Ask The Expert: While you have several options to go for, sometimes not knowing things also becomes a reason that you end up paying more or never getting the financial planning correct. Hire an expert tax attorney Maryland for proper tax planning and to save on your tax. Your tax attorney will not only buy you some time but will take care of all your tax-related cases in the future. 

Conclusion

In the end, the only thing that can completely ruin your chances to have a clean sheet is hiding from the IRS. It will be a matter of time before they will get you and after that, things may never go your way. On the other hand, the IRS has a history of working well with people

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Longman & Van Grack LLC
Joined: February 14th, 2019
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