What Should I Do if I Can’t Pay My Taxes?
Paying federal income taxes is a responsibility that all people share. At the end of the year, all people are required to provide any relevant tax forms that will calculate their tax liability. While some people may have appropriate taxes taken out during the year, others may be surprised to find that they owe more taxes than they realize. If you find yourself in a position in which you cannot pay your tax bill, hiring legal representation can be a good option. When hiring a tax attorney Atlanta GA residents can receive the support they need to work with the IRS. This can include receiving a variety of settlement or extended repayment options.
When hiring a tax lawyer Georgia residents will first receive help to extend their payment date. For the 2020 tax year, tax payments are due in the middle of May. If you have completed your tax forms and recognize that you owe money, you do have the option of petitioning for a tax extension. If engaging a tax attorney Atlanta residents can get the help that they need to have the tax date extended. In most cases, this will provide you with up to four months to make your tax payment on time.
Extended Installment Loan
Receiving a 120-day extension for tax payments is helpful in a lot of situations. This could give you enough time to sell assets or save some money to pay the past due liability. However, there are situations in which you will not be able to pay the taxes back on time. If this is the case for you, getting a long-term loan is a good idea. The IRS is often willing to provide installment loans to help you get back into compliance with your tax liability. In these cases, you may have well over 120 days to repay the loan with agreed monthly payments. There may be penalties and interest assessed if you do enter into a formal installment loan with the IRS.
Notify that Taxes are Not Collectible
While it is ideal to pay the IRS back for taxes that you owe, it is not always possible. Certain circumstances including job loss, unexpected bills, and other financial setbacks can make it hard to repay the funds that you do owe to the IRS. If you are not able to repay your debt owed to the IRS, it is possible to notify them that you cannot afford to repay any portion of the obligation. When hiring a tax attorney Georgia residents will receive the support they need to provide this notification. While you will eventually owe the past due taxes, the date in which they need to be repaid can be extended.
Another option in this situation is to settle with the IRS. This entity is established to help collect taxes, but they do have a process for settling for a lesser amount. An Atlanta tax attorney can help you negotiate a settlement with the IRS. This will often include having you pay a certain amount immediately with the understanding that some debt will be forgiven. This could help you to save some money off of your tax bill. However, the IRS may require that you assess your withholdings to ensure you do not fall behind again.
Falling behind on your taxes can be a serious situation.
The Law Office of Max Benkel can offer a range of services to ensure that you are properly represented. This can include helping you understand your tax liability with the IRS and working with the tax authority to come up with a fair repayment plan to ensure you stay in good standing and are able to repay any tax liability that you have.