Best Advice to Follow If You Cannot Afford Paying Your Taxes
Paying your taxes is mandatory if you want to stay out of trouble with the IRS. And this is perhaps the last thing you would want to happen, whether you are a working professional or run a business.
However, you may get into a messy situation as the deadline comes near and clearing off your tax liability appears to be practically impossible. While this is daunting news, you can still take some measures to save yourself from the wrath of the authorities. Here is some useful advice that you can follow if you cannot afford to pay your taxes in full.
Be Sure to File On Time
Filing your taxes is most important because not doing so can land you in much deeper trouble than you think. In fact, the penalty for failing to file is much greater than that for not paying.
Stay updated with your tax records even if you are in a financial crisis because you would not want any last-minute hassles. Ensure that you claim all the legitimate deductions and credits as they can reduce your liability to a significant extent.
Connect With a Tax Professional
The inability of paying your taxes is definitely a crisis situation and only an expert can give you the right guidance. Look for someone with the right skills and experience, though they must fit into your budget as well. It is best to explore a platform like TaxAttorneys.io, where you can connect with seasoned tax lawyers and choose one who is just right for you. Such platforms have extensive networks of lawyers and finding someone good becomes easier than you think.
Pay As Much as You Can
Paying as much as possible is better than not paying at all because it shows your good intentions towards clearing your tax bill. When you have a crisis and know that taxes are going to be a problem, start planning and save as much as you can to pay at least something to the IRS. You can look around for cash by selling your vehicle or old stuff but this is a decision that you would not regret. Don’t even try getting an extension if you are in a fix, just go ahead and make your best effort!
Consider an IRS Installment Plan
Your attorney will probably advise an IRS installment plan when you are in such a fix. This is a good idea because you can close the gap by paying small installments rather than not being able to clear the full amount together. The attorney can approach the IRS on your behalf and convince them to provide a feasible option to clear off your liability over time.
Being unable to pay your tax is an unfortunate situation and you need to be aware of what went wrong. Not making it a habit should be your top priority because you would not want to be on the IRS hit list by flouting your taxes season after season. Whatever the problem may be, take the requisite steps to resolve it and prevent its recurrence in the future.