First State CPAs and Associates

17 hours ago

𝙒𝙝𝙖𝙩 𝙞𝙛 𝙄 𝙘𝙖𝙣’𝙩 𝙥𝙖𝙮 𝙢𝙮 𝙩𝙖𝙭 𝙗𝙞𝙡𝙡 𝙞𝙣 𝙛𝙪𝙡𝙡?

First, and most important, don’t ignore it. It’s easy to put off a tax bill when you know you can’t pay it. But that usually makes the problem more expensive.

Here’s what we generally recommend to our clients:
1. Pay as much as you can right now. Even a partial payment helps reduce the interest and penalties that continue to accrue.
2. Look at short-term IRS payment relief. In some cases, the IRS may allow additional time to pay in full.
3. Set up an installment agreement.
4. If paying would keep you from covering basic living expenses, see if you qualify for Currently Not Collectible status.
5. See if an Offer in Compromise is an option for you.
6. Avoid using credit cards, private loans, or home equity to pay the IRS, as this can put you in a much more difficult (and higher interest) position.
7. If necessary, consider selling assets you no longer need.

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