“I can’t pay my taxes.”
Many people who can’t pay their taxes don’t realize the opportunity if front of them. If you can’t pay your tax debts to the IRS you might qualify to pay less taxes owed or, have the debt forgiven altogether. Most people behind on their tax bills ignore the problem until they have money to pay the IRS. Big mistake.
Waiting for your financial situation to improve before trying to pay the IRS only increases your debt. Not only will you have to pay the taxes you owe but, penalties and interest are added to your back tax bill. These tax fines would have been avoided if you dealt with your tax problem, before you had the money.
“How do I pay my taxes if I don’t have money?”
This is a great questions since, most people assume you need to have the money to deal with your tax issues. The simple answer is, “You don’t need money.” You only need to communicate your problems to the IRS, preferably through a professional. You see, the IRS has programs that help people who are behind on their taxes. Fresh Start Initiative is the name of the push by the IRS in 2016, to help delinquent taxpayers behind on their taxes. So if you are behind now, the help is there for your to solve your problem today.
Look at it another way, what happens if you wait for your situation to improve and it doesn’t happen. Maybe it is 1 to 5 years from now. Should you wait another 1 to 5 years for your situation to improve? You probably won’t because you’ll probably have a tax lien filed against you; or worse tax levy or wage garnishment.
Ringing the IRS’s Doorbell
Eventually you will contact the IRS for help. A wise taxpayer will enlist professional help since, the options for tax help are complicated. Once you realize you could have solved your tax problem the same day you couldn’t pay your taxes, you will be kicking yourself. Remember, you now owe much more in penalties and interest. Furthermore, you might have the money to pay your tax liability in full and now you HAVE to pay it all. Whereas, in the beginning, you didn’t have the money to pay the IRS, and might have had much of your tax debt forgiven.
Bottom Line For Dealing With Tax Debt
It is far more costly to wait to deal with your back taxes. Save money and do it when you are in financial trouble. The IRS might send you a life line you will forever be grateful for.