How Bad Is It If I Can’t Pay My Tax Bill?
The problem of not paying your tax bill can be minimal if you decide to do something about it or it could be detrimental if you ignore it.
The IRS offers alternatives if you cannot pay your taxes when our file your return. However, you just have to do something. Here are some of the alternatives the IRS offers:
- An extension – you can ask for up to 120 days to pay your bill
- Payment plan – there are installment agreements, depending on your situation. These agreements range from simple that can be setup online to more complicated ones requiring you to submit documentation of your financial situation
- Currently not collectible status – by proving your financial hardship, which tells the IRS you cannot pay right now then the IRS will not ask you to pay until your circumstances improve
- Offer in compromise (OIC) – a settlement of unpaid taxes for less than what is actually owed, but you have to qualify. OIC is commonly used when taxpayers have few or no assets, and have trouble paying for their living expenses.
If you need help deciding on an alternative and need assistance contacting the IRS, then give us a call at 573-686-3053. Owing taxes and not being able to pay isn’t ideal, but dealing with it can really help negate a bad situation.