When it comes to taxes, not all states are created equal. Some have higher tax rates than others, which can greatly affect residents' economic positions. Connecticut residents in particular carry a significant tax burden, as tax rates here are some of the worst in the country.
There are plenty of reasons why some Connecticut residents will be unable to have their taxes completed and filed by this year's deadline, which is fast approaching. The Internal Revenue Service allows those who require extra time to prepare and file their tax returns the ability to request extensions, which would give them until mid-October to have everything squared away. While an extension can be a helpful tool, for those who owe money, it can actually end up increasing their tax debt.
If you are behind on paying your taxes, as many Connecticut residents are, and you have not taken any steps to work with the Internal Revenue Service to rectify the situation, certain actions may be taken against you in an effort to collect the money owed. One such action is wage garnishment, also referred to as a wage levy. Yes, the IRS can have your employer send a portion of your check straight to it, and no court order is required for this to happen.
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.
There are numerous Connecticut residents who, for various reasons, are behind on paying their taxes. Letting tax debt go for too long will only increase how much one owes in the end, thanks to penalties and fees that the Internal Revenue Service will tack on. Dealing with tax debt sooner rather than later is always a good idea.
Being unable to pay one's tax bill can be defeating. A lot of Connecticut residents are struggling financially right now, and the last thing they need is to have penalties and fees attached to tax bills that are already outrageous. Thankfully, those who do end up owing more than they can pay do have options to ease their financial situation. One such option would be seeking an Offer in Compromise.
Numerous Connecticut residents struggle to pay their taxes every year. If they let their tax debt grow year after year without making any payments, the Internal Revenue Service may issue a levy to collect. What does a levy do, and can one stop it?
While the year 2020 may still be in its early stages, tax season will be here in the blink of an eye. Many Connecticut residents are already fast at work getting their taxes completed, and some are finding that they owe the Internal Revenue Service more than they can possibly afford to pay all at once. Thankfully, if you are in this boat, you do have a variety of payment options that you can utilize to ensure you stay on the IRS' good side.
Every year, numerous Connecticut residents find themselves unable to pay their taxes. If you find yourself in this position, there are various ways you can pay off your tax debt without doing too much damage to your pocketbook. One way is through installment agreements.
Owing money to the IRS is not an attractive prospect for anyone here in Danbury or elsewhere. Even so, many people do. The agency now uses private debt collection agencies to collect back taxes or tax debt, and recently instituted a new way to set up multiple payments with one phone call.