Still, taxpayers filing income honestly with the IRS may find that they have a tax bill they can't afford.
Jupiter, Florida (PRWEB) April 26, 2013
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:
1. 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.
4. 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.
5. Hire a tax relief company to help with the intricacies of tax law and help find the right option for the each tax debt situation.
About Tax Help MD
The seasoned tax settlement professionals at Tax Help MD are driven to help tax payers settle back taxes owed to the IRS. They take an honest look at a tax payer’s situations, and help them consider the best possible solution to resolve their tax issues. Tax Help MD’s extensive knowledge and experience in communicating with the IRS is a tax payer’s biggest asset when it comes to the stress and pressure in dealing with the IRS. Whether clients are individual taxpayer, a small business owner or a corporation, the IRS tax relief experts at Tax Help MD work diligently for your interests by advocating on a tax payer’s behalf until they find the best personalized solution for each and every client. For more information visit http://www.mytaxhelpmd.com.