Every year in April, millions of Americans feel the fears and frustrations of Uncle Sam and tax debt. The financial burden can certainly take its toll on any income quite quickly, especially if the wages aren’t there to spare and a wage garnishment occurs. But, Uncle Sam and the IRS are serious about collecting the debts they’re owed and will certainly enact a wage garnishment if need be. You can read more about the consequences of failing to pay taxes that are owed to the IRS and will then clearly understand why it is important to ensure that the debt is paid.
But what do you do if the money to pay the taxes just isn’t there? After all, money doesn’t rain from the sky. There are options available to help you pay your taxes, but it is important that you ask for a payment deferment and take other steps to avoid headaches. The last thing that you want to deal with is a problem with the IRS, a potential tax audit, etc. Taking all the necessary steps to prevent that is simple.
File a Federal Tax Return No Matter What
Do not avoid filing your federal tax return, no matter how much money you owe. Some people choose this route when they owe money, and it is a bad one to take that will likely result in more trouble. The tax debt that you owe is not going away and you may cause penalties and interest rates to accrue if you avoid the filing of your taxes. A 5% penalty, per month, can be charged if you do not file.
Tax Debt Relief Programs
Many people use tax debt relief programs to help cover the debts owed to the IRS. These useful programs make it easy to repay the monies owed and are less expensive than many of the traditional loans that are now available. The debt relief programs vary in service, features, and fees, but certainly alleviate a ton of headache and hassle and keep your life sane and simple.
Using the credit card is also an option for those who have tax debt they’re unable to pay when the April deadline rolls around. The IRS welcomes credit card payments and accepts all major carriers, including Visa, American Express, MasterCard, and Discover.
Loans for IRS Debt
Get a loan to pay the debt owed to Uncle Sam. Several types of loans make it easier to get your debt paid off with the IRS and reduce the amount you’ll repay. It makes sense to use a loan or at least learn more about tax payment relief programs rather than accept the consequences of late payments from the IRS.
As you can see, there are several options to help you pay off debts owed to the IRS. It is important to evaluate each of the options to determine which is best suited for your needs. Put that to use and ensure that you are not going face to face with the IRS and Uncle Sam. That is the last battle that you need.