BACK TAXES OWED
Ok, so you filed your returns but didn’t have the money to pay what was owed. And, may think, “Oh well—I will catch up next year.” Before you know it you find yourself several years in arrears and suddenly there is a notice from the IRS, stating that you owe three or four times the original amount.
Please note, if you cannot pay the full amount of taxes you owe, you should still file your tax return by the deadline each year, and pay as much as you can to avoid more penalties and interest.
However, if you’re still unable to pay anything, you could contact the IRS and request a temporary delay on paying.
This option depends solely on whether the IRS believes that a wage earner, small business owner, or self-employed individual “cannot pay anything” towards their tax debt.
Eligibility for a temporary delay in collection is determined by a taxpayer completing a Collection Information Statement form and providing proof of financial status, including information about all assets, monthly income and expenses. This option is for individuals who will be unable to pay for necessities, like food and housing, should they pay their tax bill.
Even if your debt collection is delayed, don’t get too excited. The IRS will still enforce a penalty, and interest will accrue until you pay the full amount. Also, a federal tax lien might be filed against you to protect their interest.
How does the IRS expect you to write a big fat check and pay the full amount, including interest and penalties, if you don’t have any money?
It’s truly amazing how the IRS will keep adding penalties and interest against you. Truth be told, the added penalties and interest end up being more than what you owed in the first place. It’s as if you have a wound, and they keep pouring salt into it.
Owe back taxes and unable to pay in full? Please Don’t Panic!
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If you owe back taxes and need to be sure you understand your options, click the green button below and schedule your free Pre Qualification for Tax Debt Relief Programs Today!