Should I still file my taxes if I owe money to the IRS
Owing the IRS attracts interests and penalties. If you find yourself in a situation where you have unsettled back taxes, it is best to begin to seek ways to pay because it can eventually lead to unpleasant consequences like property seizure, bank levies, and wage garnishment. These can put you in a very bad financial state.
There are different options available to people with tax debts. The first is paying everything they owe at once. If you can afford a one-time lump sum payment, then do that immediately. But if you can not afford to pay everything you owe at once, you should look at other options available for you to pay your debt.
Some of the options available include:
– Installment payments: People who can not afford to pay everything they owe at once can reach an agreement with the IRS and decide to pay a certain amount every month until their debt is completely paid. The payment can span over 6 months.
– Offer in compromise: An offer in compromise is one option that really helps may people in tax debts. If you qualify for an offer in compromise, you get to settle your tax debt for way less than you actually owe. The IRS will agree to an amount if they believe that is the maximum they can get from you before the debt exceeds its statute of limitations.
– Currently not collectible: If your financial state is very poor, you can be excused from paying your tax debt for some time. However, you will still have to pay the debt when your finances get better.
One of these options should help you settle your debt depending on your unique tax situation. Contact us today if you are wondering what options best fits to settle your tax debt.
You may be wondering and asking yourself: Should I still file my taxes if I owe money to the IRS?
This is a valid question that many people wrongly assume they have the answer to. It is easy to assume that if one has not paid their taxes, they need not file it either.
But, this is a dangerous thing to do.
Filing your taxes is entirely different from paying it. You are expected to file your taxes even if you owe money to the IRS.
Just as the “failure to pay” penalty exists for people with tax debts, the “failure to file” penalty also exists for people who fail to file their taxes.
Many taxpayers make the mistake of ignoring their duty to file their taxes just because they owe money in unpaid back taxes. Doing this will only worsen your situation.
When you fail to file your tax return, you get a 5 percent penalty for every month after the tax day that you did not file.
If the deadline for filing your tax is close and you’re overwhelmed and unable to file in time, it is best to request for an extension as soon as possible.
If your request is granted, you will be given an additional 6 months’ grace to file your taxes.
This is a very good option for people who do not have enough time to file their taxes and have the tax deadline getting closer and closer. Take note that the extension does not provide you with extra time to pay your taxes, it only gives you time to file.
We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need to overcome your tax debts and be well on your way to financial freedom. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at [email protected].
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