Want the good news or the bad news? Let’s start with the bad news first. If you have tax debt, you still have to pay the government back.
It can be hard to plan for everything. In fact, no one seemed prepared for the pandemic of COVID-19. These unprecedented times have had tough financial consequences for a large percentage of our population. No matter how well you thought you were planning, you might have ended up with some tax debt this year.
We understand that during these uncertain times, finances are stretched and you are probably wondering what happens if you don’t pay your tax balance. Today, we are going to give you those answers.
You Still Owe the Money
Want the good news or the bad news? Let’s start with the bad news. If you have tax debt, you still have to pay the government back, no matter how much of a sob story you can give. Uncle Sam is not very empathetic and he always wants his money. The good news, however, is that there are ways to deal with your situation. Tax help is on the way!
Get an Extension
Think you may be able to pay your debt soon, just not right now? If you think you are capable of paying your tax debt off all at once, the IRS will give you an extension of up to 120 days. You will have to pay a fee, but this is a great option to give you temporary relief. The best part? Once you reach the end of the extension, your tax bill is paid in full and you don’t have to think about it ever again!
Currently Non-Collectible Status
Not everyone is able to pay off their tax debt all at once. In fact, sometimes you can’t pay it at all. If you are able to show the IRS that you are experiencing extreme financial hardship, they might let you off the hook…for now. You will still owe the entire balance (plus interest), but you won’t be penalized for not making any payments for the time being.
Settle For Less Than You Owe
You might find yourself not in either of the above scenarios. When you want tax relief, but can’t pay in full and don’t qualify for Currently Non Collectible status, there is yet another option. The IRS will often let you settle your debt for less than you owe. How do you make that happen? The first thing you need to do is find a reputable tax resolution firm. This is not something you want to try and negotiate on your own.
Fortunately, Ideal Tax Solution is one of the best tax relief companies around. We know how to file the necessary forms to get your tax debt settled, or get you on a payment plan. No one should have to deal with their tax debt alone. You need to have someone fighting for you and in your corner. Ideal Tax Solution is here to be the support you need to resolve your tax debt once and for all. Contact us today so how we can help you!
We provide professional guidance to people whose lives have been affected by tax problems. To evaluate your specific tax issue and determine if you qualify for tax relief, please contact us for a free consultation.
The content of this post is not intended to replace the advice of a licensed tax professional. Consult a qualified tax professional for questions specific to your individual circumstances.