Have tax debt? Here are 3 things you may want to do

| May 29, 2020 | Back Taxes or Tax Debt

Not being able to pay one’s taxes can cause a person to experience a lot of stress. Connecticut residents with tax debt may put off filing and paying for years because they fear the consequences of failing to pay on time and in full. For anyone who is struggling to meet his or her tax obligations, here are three things to consider doing as soon as possible.

Suggestion number one: file taxes anyway. Even if a person is not able to pay what is owed, filing on time anyway will accomplish two things. First, it will help one avoid monthly penalties, which can be anywhere from 5 and 25% of the balanced owed. Second, it will at least show the IRS that one is not trying to evade his or her tax obligation, which has criminal consequences.

Suggestion number two: figure out a way to pay. Believe it or not, the IRS is willing to work with those who are unable to pay their tax debt in full. An installment agreement may be created or one may request a delay of payment, and it may be possible to settle for less than one owes by seeking an offer in compromise.

Suggestion number three: seek help as soon as possible. While the IRS is willing to work with those who have tax debt, it does not mean that it will make it an easy process. When dealing with the IRS, one does not have to do it alone. An experienced tax attorney may prove helpful when filing for relief or negotiating payment terms.

Here’s the thing, millions of people struggle to pay their taxes every year. Quite a few of them reside in Connecticut. It happens, and it is okay. Just know that the sooner tax debt is tackled, the better.

CATEGORIES
ARCHIVES
RECENT POSTS