What to Do if You Cannot Pay Your Taxes?


By Todd Whalen - December 22, 2020

What to Do if You Cannot Pay Your Taxes?

Even before the coronavirus pandemic, about 20% of Americans owed additional money on their tax bill. And even if it was difficult, most people could pay their taxes, even if it meant making payments to make things right with the IRS.

We’re now dealing with the financial implications of the pandemic, which has seen over 100,000 small businesses close their doors forever. The distress from the economic meltdown is far reaching. Many people are struggling financially and have not paid their tax bill for 2019.

Making matters worse, if you haven’t paid your taxes you may not be able to claim government relief, including past and future stimulus checks. That’s just one reason why it’s so important to fill out the proper paperwork with the IRS.

Can’t Pay Your Taxes? File a Return Anyway

If you’re unable to pay your taxes, rest assured you’re not alone. Don’t panic. Understand that you have options to resolve the problem.

Perhaps the worst thing you can do is procrastinate on filing your taxes. The longer you wait to file, the more you will have to pay the IRS. Conversely, your best option is to file your taxes, even if you cannot pay the full amount on the taxes you owe. If you’re able, pay as much as you can to minimize penalties and interest.

Remember, if you owe taxes but you do not file a return, the IRS could hit you with a failure-to-file penalty, adding an additional fee of 5% to 25% of your unpaid tax burden. However, if you file your taxes – even if you don’t pay your tax bill - the penalty the IRS issues will be a much smaller 0.5 percent of your tax bill.

In many cases, the IRA will grant a waiver on penalties. However, the agency will not waive the accrued interest on unpaid tax bills. That means, the longer you wait, the more interest you’ll have to pay.

Don’t wait another day. Our certified tax professionals can help you resolve your tax bill while paying the least amount of money to the IRS.

Let Advanced Tax Solutions Help You

Whether you haven’t filed in one year or 15 years we can help you get your taxes on track and get the IRS off your back. Let us help you select the right solution for your tax issues.

Hey, we get it. No one likes paying taxes and dealing with the IRS is even worse. That’s where we come in. Resolving tax issues and working through the complexities of the process with the IRS is what we do.

If you need help solving your IRS problems through certified tax filing services, call Advanced Tax Solutions today and speak to a licensed professional. We’ll review your tax situation and identify your best options so you can put all your tax issues behind you.
 
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