Q: What if you can't pay your taxes?

YesBoss
30
YesBoss posted Apr 12, 2012
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8 Comments
ArtemisDeals
i guess its better to file and not pay than not file at all... good article... never knew that
ArtemisDeals (rep: 7.16k) posted Apr 12, 2012
10
rd995
you dont want to own money to the irs if you cant pay the whole ammount try to go to an agreement where you can make payments but if you just ignore it they will get their money out of your bank account and if you live paycheck to paycheck that account will be negative until the money is paid
rd995 (rep: 105k) posted Apr 12, 2012
30
YesBoss
rd995 is Right. They Will Take Their Money
YesBoss (rep: 30.6k) posted Apr 12, 2012
20
dealwagger
Right there w/YessBoss & rd995. Even if you file for bankrupcy, you can't get out of tax debt or school loans through the government.
dealwagger (rep: 10.2k) posted Apr 12, 2012
00
jpanddanielle
If you don't file, they assume you made the same as last year, minus any deductions. Don't ever just not file at all...
And the IRS does do payment arrangements, and yes, as rd995 says, both state and federal will reach into your bank account and just take whatever, and you are screwed.
source : personal experience
jpanddanielle (rep: 96) posted Apr 12, 2012
10
lilywow
You should file, and make some payment even if it's not the full amount. Call them in about 2 months, and ask for an installment agreement. They will give you one but you will pay interest at about 10-15%. If you don't owe a lot and can pay it off in a year, send the full payment with one of those balance transfer checks from a credit card offer at o% and 3% fee and pay it off in one year.
lilywow (rep: 8.32k) posted Apr 12, 2012
00
skaro964
Please note this is not legal advice, just publicly avalible information.
Don't skip this payment. The feds also take credit cards now, Visa and MC I believe. But what ever you do Please file. You can even send in a small good faith check ( minium amount $25.00) and make arrangements to pay the balance.

IRS.gov is a good place to start. Check out this page it has all the answers you will need. http://www.irs.gov/individuals/article/0,,id=241919,00.html?portlet=104

Here is a portion from the web site.

You can make monthly payments through an installment agreement if you're not financially able to pay
your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply:

File all required tax returns;
Consider other sources (loan or credit card) to pay your tax debt in full to save money;
Determine the largest monthly payment you can make ($25 minimum); and
Know that your future refunds will be applied to your tax debt until it is paid in full.
Avoid the fee for setting up an installment agreement
Pay the full amount you owe within 120 days to avoid the fee. You should apply online to specify this option (or call if you owe more than $50,000). If you cannot pay the full amount within 120 days, the fee for setting up an agreement is:

$52 for a direct debit agreement;
$105 for a standard agreement or payroll deduction agreement; or
$43 if your income is below a certain level.
Apply for an installment agreement
Apply online if you owe $50,000 or less in combined individual income tax, penalties and interest;
Call the phone number on your bill or notice;
Complete and mail Form 9465-FS, Installment Agreement Request (PDF). If you owe more than $50,000, you will also need to complete Form 433-F, Collection Information Statement



For next year play around with your withholiding and have them take more through out the year.
skaro964 (rep: 4.1k) posted Apr 13, 2012
00
Stephykin
maybe they will take their money
Stephykin (rep: 28) posted Apr 24, 2012
30