Tax Help MD is helping the thousands of Americans who have tax problems and owe money to the federal government. Not everyone receives a nice paycheck from Uncle Sam at the end of the year, according to the tax experts at Tax Help MD. To avoid any penalties, Tax Help MD is sharing tips with the hardworking tax payers who cannot afford tax bill.
According to the IRS, there are billions of tax payer dollars that won’t be collected. The majority of this money is from income earned by Americans that are self-employed or hold jobs, such as babysitting, that don’t withhold taxes from paychecks or send out W2’s. Every year the IRS collects as much money that is due to the government as possible. This means that, if a taxpayer wants to avoid penalties and interest, they should file their taxes honestly and on time, according to Tax Help MD.
Still, taxpayers filing income honestly with the IRS may find that they have a tax bill that they can’t afford. The tax experts at Tax Help MD offer the following tips for dealing with unaffordable income tax bills:
- File the return and worry about the rest later. In order to reduce penalties and interest owed to the IRS, 2012 taxes should have been filed on or before April 15th.
There are penalties for failure to file as well as failure to pay. By filing on time, the failure to file penalty can be avoided. Managing to scrape some of the money to pay the bill together can also reduce the amount of interest owed.
- Sign up for the payment plan. The IRS offers the option to enroll in an installment plan instead of paying in just one massive lump sum. There are a few different kinds of installment plans that the IRS offers including a Guaranteed Installment Agreement, a Streamlined Agreement, Regular Agreements, and Partial Pay Installment Agreements (PPIA). Each of these has its own requirements to qualify.
- Pay with a credit card or take out a loan to pay the IRS. This should only be done if a loan or credit with a lower interest rate than what the IRS will offer can be obtained.
- File for bankruptcy. This should be your last option. This will stop tax collection in its tracks, but this may just be temporarily. There will be an “automatic stay” but the IRS may then file a claim for the money owed in bankruptcy court. Filing for bankruptcy could mean still paying a large amount of the taxes owed as well as other consequences.
- Hire a tax resolution company to help with the intricacies of tax law and help find the right option for the each tax debt situation.
Looking for a Tax Help? My Tax Help MD is a professional tax resolution providing platform that can provide you meaningful IRS tax resolution services. We have helped many Americans in dealing with their tax filing and payments. If you have a busy schedule or you can’t handle the process required for your tax file, you better consult us to get the things done in a professional manner for you. We provide the best IRS audit help in the United States.