Options for Those Who Do Not Have Money to Pay Their Taxes

If you cannot afford to pay your taxes, one of the worst things that you could do is just not file your taxes at all. When it comes to paying your taxes, the IRS is willing to work with you, especially if you have filed your taxes on time. Therefore, today we are exploring some of the options people have who do not have the money to pay their taxes.
Pay as Much as You Can
When you file your return pay as much of your balance as possible. This way you are not penalized for filing late, the late penalty is reduced, and the interest charges are not as high.
Take Out a Loan
If possible, take out a loan to pay your taxes on time. Usually you will find that the loan interest will be lower than the amount the IRS is going to charge you if they have to hit you with a penalty.
Pay With Your Credit Card
You may not want your credit card utilization to skyrocket; however, the penalties the IRS impose will be worth it. You can gradually pay down your credit card over time without having to pay large sums of money in penalties to the IRS.
Request an Installment Payment Agreement
When you know you cannot afford to pay the IRS, call them and request an installment payment agreement. Do not wait for them to send you a bill. Show them ahead of time that you plan to pay them yet do not have all of their money on hand at the time.

We are always looking for clients in need of a Redmond CPA firm! We can be that firm for you! Call us at (425) 483-6600!

About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has owned his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

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