HELP! I CAN'T PAY OFF MY INCOME TAX DEBT IN SAVANNAH,GA.
Owing income tax debt in Savannah can be extremely stressful. How did your debt reach this point? How can you find relief for your debt without going broke? Find out ways to pay off the IRS while keeping a little money in your savings account in the process.
1. Double Check Your Taxes
If you were blinded by your income tax debt in Savannah, you might not owe the bloated amount at all. Even if you used a tax preparation software or a tax professional, you should always double check the amounts before you file. It’s easy to transpose a number or add a number twice in your taxes. It sometimes feels like the IRS wants you to make a mistake with their frustrating forms! Tax professionals often make mistakes because they are overworked at tax season, so take your tax professional with a grain of salt. Always double check your tax forms before submitting your final tax documents.
2. Avoid Penalties
You might not be able to avoid your taxes, but sometimes you can avoid penalties. There are two easy ways to avoid paying penalties. If you owed more this year than you did last year, you can usually avoid paying penalties – as long as you paid your estimated taxes throughout the year. You can also send a letter to the IRS to explain why you underestimated the amount you owe in taxes or the reason you can’t pay your taxes in full this year. The IRS will take all this information into consideration and possibly reduce your penalties or remove the penalties altogether.
3. Create an Installment Agreement
The most common way to deal with unpaid taxes is through an installment agreement. The IRS wants to give you every effort to pay your taxes in full, which is why they offer installment agreements. You can create an installment agreement by calling the IRS or visiting their website. You can choose the amount you want to pay each month – within reason. The IRS will deduct the amount from your bank account each month or give you the option to send in a check or money order by the due date every month.
4. What Not to Do
If your income tax debt in Savannah is stressing you out, you might go to extreme measures to try to pay off your debt any way you can. The best way to pay off this debt is through an installment agreement because the IRS offers extremely low interest rates on your unpaid balances. Don’t try to put your taxes on your credit card because your credit card’s interest rates will most definitely be at least double what the IRS would charge you with an installment agreement.
You should also try to avoid an offer in compromise (OIC). This is, essentially, the IRS equivalent to filing for bankruptcy. Unless you owe three to four times your net worth in taxes, this option is not worth the struggle and sacrifice. You’ll end up paying the IRS pretty much everything you own, minus your debts.
You should never put off the IRS or ignore notices from the IRS. While it seems like a valid option, this is one of the worst ways to handle unpaid debt in Savannah. The IRS can put a lien on your bank accounts and deduct money from your paycheck every week. They can seize your assets. This can be embarrassing and frustrating, so the best way to deal with unpaid taxes is head on.
You might feel like paying off unpaid taxes will sink your life. You will probably feel frustrated and angry. Yet there are plenty of options to help ease the pain and embarrassment of unpaid taxes.
If you have any questions about income tax debt in Savannah, or you need debt counselling services, contact the law offices of experienced attorney, John E. Pytte.