Even though most of us will be able to begin filing our taxes on January 30th this year, many of us will procrastinate and put it off much later! Whether we struggle to find the paperwork, don’t have the time, or are habitual procrastinators, many of us will add to the heavy traffic at Post Offices and e-filing centers in mid-April.
Unfortunately, we sometimes procrastinate because we know that we are going to have problems paying our tax bill. We may not have withheld enough money, or we failed to send in those quarterly estimated taxes, or we might not have saved enough. If you’re in that camp, you’re probably asking what to do, or who to turn to when you have tax problems.
One of the most important things you can do is to still file your return on time. Even though there are penalties for late or insufficient payment, you can still avoid the severe penalties for filing late. You might explore an installment agreement with the IRS, allowing you to pay your burden over time (IRS Form 9465).
You’ll want to avoid adding to your credit card debt, so be sure to explore other low-interest options. You might be embarrassed to ask for help, but it’s vital to swallow your pride and go to the people who can help you out. The IRS will want to see that you’re paying something on your tax burden, so if you can get a quick loan from a family member or friend, it might make all the difference in the world.
On the other hand, your tax burden may be so overwhelming that none of these options are really suitable for you. In those cases, you’ll want to look into one of several tax relief options, either negotiating a lower payment, applying for penalty abatement, or entering into a Partial Pay Installment Agreement.
If you’re needing one of these more specialized options, it’s best to look for a reputable tax attorney or tax resolution service in your area. Ask your accountant for a referral, or ask around to find people who’ve been in similar situations. Tax attorneys are especially helpful when it comes to negotiating a compromise or helping you navigate the paperwork and contracts. Be sure that you have seen a tax preparation specialist first, to make sure that all of your tax returns are accurate and up-to-date.
Contact us for more information about how a tax resolution service or tax attorney can help you resolve your tax problems.