November 21, 2018
If you do not have the required funds to pay the entire amount that is due to be paid to the IRS, it is ideal that you reach out to the IRS about your options for payment. Even if you would be unable to pay the taxes by the set deadlines, it is in your interest to ensure you make the highest amount of payment as you possibly can so that penalties due to payment failure can be avoided according to the IRS website.
The following are some things you can do if you do not have enough funds;
Ask for an extension;
An additional 60-120 days can be requested for to pay your debts if the online payment agreement application on the IRS website is filled. You can also reach out to the IRS to set up an agreement for payment.
Paying as much as you possibly can by the deadline will reduce the amount that you would be required to pay in form of interest and penalties on the long run as well as a shorter payment agreement.
Apply for an agreement for installation
If you would require above 120 days carrying out payment of the full debt, send an application for an agreement for installment. You can also submit form 9465 Installment Agreement Request, in written form or contact the IRS. But the fastest path is doing so online.
Utilize an alternative payment method
Your tax burden could be financed by a personal loan or credit card. If you would prefer to manage those instructions – dealings with the IRS, bear in mind that there is a processing fee for credit cards.
It is up to you to select the best choice for your credit standing or budget. Utilizing a credit card or loan to carry out payment of your taxes can have an effect on your credit. The most crucial thing is to carry out payment before the deadline because tax debt collectors and a tax lien can result in financial issues as well.
Unpaid taxes can amass penalties which can grow largely over a period which is why it is crucial to deal with the situation as quickly as possible. Alternative methods are offered by the IRS to carry out payments of tax debts like Tax Penalty Abatement, Offers in Compromise, Currently Not Collectible (CNC) status, or payment programs. It is wise to have a tax advisor like a tax attorney to assist you in carrying out negotiations if you feel like it is something you can’t handle or deal with.