April 15th Came and Went and I Didn't Pay My Taxes... Now What?
Tax Debt Settlement
Many of us dread April 15th. If we haven’t paid our taxes, we dread April 16th even more - the first day you owe arguably one of the most powerful collection companies in the world –the IRS. Until April 16, it was a worry in the back of our minds. Now it is reality.
For whatever reason, you didn’t pay your taxes in full or not at all. You wake up the morning of the 16th with a gut- wrenching feeling not knowing what to do. You’re not alone with this feeling. According to the IRS, just over 9 million Americans had a delinquent tax accounts in fiscal year 2013.
Not only does the IRS charge penalties and interest, but they also have the ability to reach into your bank account, drain your liquid assets and take a portion of your paycheck until your debt is paid in full. What do you do?
The first thing to do is take a deep breath and start to figure out how to work your way out of this situation. If you stay in touch with the IRS and work with them to resolve your outstanding tax debt, the IRS, in most cases, will not attempt to levy your bank account or garnish your paycheck. The IRS uses these collection tactics to get the attention of delinquent taxpayers who ignores the IRS’ request for payment.
Next, you want to ensure you tax return has been filed, even if you can’t afford to pay the tax. If you don’t file you tax returns that is a crime. However, it is very rare for any criminal consequence to be enforced. In other words, you do not have to worry too much about going to jail. Jail is reserved for those who intentionally try to defraud the IRS, not those who simply can’t afford to pay. When you file your returns, but cannot afford to pay your taxes, you will not be criminally charged. Failure to pay is a civil matter, and, as such, civil penalties and interests are attached to the outstanding tax balance.
After you file your tax returns, the next step is to determine if you will be able to pay your outstanding tax balance in 4 or fewer months. If you can pay in 4 months or less, call the IRS 800-829-1040 or visit their website at www.irs.gov and make arrangements with them. The IRS will assess penalties and add interest onto your balance up and until the time you are able to pay the balance in full.
Installment Agreement
If you can’t pay your balance in full within 4 months, you will need to ask for a payment arrangement called an Installment Agreement. This will give you up to 6 years to pay your debt in full. Depending on how much you owe, the IRS will have different standards for how much you will need to pay per month and how much documentation you will need to provide them as to proof of how much you can afford to pay each month. Remember, interest and penalties are accruing on your outstanding balance. It is in your best interest to pay as much as you can and as quickly as you can toward your balance.
Offer In Compromise
If you truly can’t afford to pay your outstanding tax balance, the IRS has another program called the Offer-In-Compromise. This is essentially a negotiation you enter into with the IRS where you are able to settle your tax bill for less than the full amount owed. This is granted only to those who are in extreme financial hardship. You will be required to supply the IRS with proof of your financial hardship. If you are approved for this program, you will have up to 24 months to pay this reduced tax bill.
Currently Not Collectable
The IRS has one additional program, Currently-Not-Collectable. This program assists the taxpayer who has only enough money to pay for basic living needs, or even less, and enables the taxpayer to ask for a reprieve from collections. This allows the taxpayer time to get back on his/her feet and then later enter into a repayment plan.
As long as you stay in communication with the IRS and work with them to resolve your tax issues, you can keep the most powerful collection company at bay. To learn more about how to resolve your delinquent tax bill for the least amount possible, visit www.TheTaxSettlementGroup.com or call us at 877-801-9166.
Tax Debt SettlementMany of us dread April 15th. If we haven’t paid our taxes, we dread April 16th even more - the first day you owe arguably one of the most powerful collection companies in the world –the IRS. Until April 16, it was a worry in the back of our minds. Now it is reality.
For whatever reason, you didn’t pay your taxes in full or not at all. You wake up the morning of the 16th with a gut- wrenching feeling not knowing what to do. You’re not alone with this feeling. According to the IRS, just over 9 million Americans had a delinquent tax accounts in fiscal year 2013.
Not only does the IRS charge penalties and interest, but they also have the ability to reach into your bank account, drain your liquid assets and take a portion of your paycheck until your debt is paid in full. What do you do?
The first thing to do is take a deep breath and start to figure out how to work your way out of this situation. If you stay in touch with the IRS and work with them to resolve your outstanding tax debt, the IRS, in most cases, will not attempt to levy your bank account or garnish your paycheck. The IRS uses these collection tactics to get the attention of delinquent taxpayers who ignores the IRS’ request for payment.
Next, you want to ensure you tax return has been filed, even if you can’t afford to pay the tax. If you don’t file you tax returns that is a crime. However, it is very rare for any criminal consequence to be enforced. In other words, you do not have to worry too much about going to jail. Jail is reserved for those who intentionally try to defraud the IRS, not those who simply can’t afford to pay. When you file your returns, but cannot afford to pay your taxes, you will not be criminally charged. Failure to pay is a civil matter, and, as such, civil penalties and interests are attached to the outstanding tax balance.
After you file your tax returns, the next step is to determine if you will be able to pay your outstanding tax balance in 4 or fewer months. If you can pay in 4 months or less, call the IRS 800-829-1040 or visit their website at www.irs.gov and make arrangements with them. The IRS will assess penalties and add interest onto your balance up and until the time you are able to pay the balance in full.
Installment Agreement
If you can’t pay your balance in full within 4 months, you will need to ask for a payment arrangement called an Installment Agreement. This will give you up to 6 years to pay your debt in full. Depending on how much you owe, the IRS will have different standards for how much you will need to pay per month and how much documentation you will need to provide them as to proof of how much you can afford to pay each month. Remember, interest and penalties are accruing on your outstanding balance. It is in your best interest to pay as much as you can and as quickly as you can toward your balance.
Offer In Compromise
If you truly can’t afford to pay your outstanding tax balance, the IRS has another program called the Offer-In-Compromise. This is essentially a negotiation you enter into with the IRS where you are able to settle your tax bill for less than the full amount owed. This is granted only to those who are in extreme financial hardship. You will be required to supply the IRS with proof of your financial hardship. If you are approved for this program, you will have up to 24 months to pay this reduced tax bill.
Currently Not Collectable
The IRS has one additional program, Currently-Not-Collectable. This program assists the taxpayer who has only enough money to pay for basic living needs, or even less, and enables the taxpayer to ask for a reprieve from collections. This allows the taxpayer time to get back on his/her feet and then later enter into a repayment plan.
As long as you stay in communication with the IRS and work with them to resolve your tax issues, you can keep the most powerful collection company at bay. To learn more about how to resolve your delinquent tax bill for the least amount possible, visit www.TheTaxSettlementGroup.com or call us at 877-801-9166.
