If you can’t pay your taxes, don’t panic! You’re one of millions of taxpayers who have struggled to pay the full amount of taxes owed and require a little leniency from the IRS. A recent survey from TaxAudit stated that 37% of taxpayers do not have the resources to pay their 2019 taxes. If you’re unable to pay your tax liability, the balance is subject to interest and a monthly late payment penalty.
Tax bills can quickly accumulate more interest and penalties the longer they sit. Not filing required tax returns can be interpreted by the IRS as tax evasion, which is considered a criminal act. Plus, there’s a penalty for failure to file a tax return, so always file on time even if you can’t pay your balance in full.
Although the IRS is unable to waive interest charges which accrue on unpaid tax bills, the agency may provide some relief, especially during unforeseen events, such as a global pandemic. Here’s how:
Short-term extension to pay
A short-term extension to pay will give you an additional 120 days to pay your full tax balance.
Installment agreement
If you owe $50,000 or less in combined taxes, interest, and penalties, you can request an installment agreement.
Offer In Compromise
An OIC (Offer In Compromise) allows you to settle your tax debt for less than the full amount you owe. Before approving you for an OIC, the IRS will look at a few different factors to determine if your eligibility.
Our tax experts will submit an Offer in Compromise to the IRS on your behalf, showing that you have exhausted all other payment options or that your tax liability is incorrect. An Offer in Compromise is the most effective way to resolve and reduce your tax liability.
You’ll then need to select a payment plan. Fortunately, you don’t have to pay your taxes all at once. You can spread out your IRS payments. There are several types of payment plans when you choose an Offer in Compromise.
- Lump-Sum Cash: Submit an initial payment of 20% of the total offer amount with your OIC application. If the IRS accepts your offer, you will receive a confirmation in the mail. Any remaining balance due on the offer is paid in five or fewer payments.
- Periodic Payment: Periodic payments allows you to submit your initial payment with your application. You’ll then need to continue to pay the remaining balance in monthly installments while the IRS considers your offer. If you’re approved, continue to pay monthly until it is paid in full.
How to Avoid a Large Tax Bill
Our tax system operates on a pay-as-you-go basis, so if you pay your quarterly taxes through the year, you can avoid a large tax bill and subsequent payment penalties when they file their return. You may want to consider modifying your withholding at any time of year by submitting a new Form W-4 to your employer.
Hear What Our Clients Have to Say
Our team of experienced tax professionals has settled over $450 million in tax debt for individuals and small businesses across America. But don’t just take our word for it, hear how we’ve helped our clients work with the IRS and save a ton of money.
Shauna G
“These guys were able to prevent a wage garnishment that was about to be placed on my husband’s salary. We were able to work out an agreement with the IRS, which saved us a bunch of money. I’ve referred a relative and a close friend to US Tax Shield. They are still in the process with them, and I hope they have the same kind of experience that I had.”
James J.
“I was told by the IRS I owed nearly 90,000.00 NINETY THOUSAND DOLLARS! I was floored and dismayed. How can this be? Well I had a gambling problem and had huge winnings from a casino. The State tax alone withheld nearly ten thousand in federal tax. US tax also helped with the State tax also. Unlike other services that leave you hanging, US TAX gave me a life rope. I got a call that my offer in compromise was approved. I now must pay $500.00 and my tax nightmare is solved. Thank you US TAX SHIELD for giving a reason to live again.”
Schedule a Consultation with US Tax Shield
You shouldn’t feel crippled by tax debt. US Tax Shield wants you to be aware of your options. Our tax relief solutions will not only get the IRS off of your back, protect your assets, and remove stress, but potentially save you thousands of dollars as well. While most tax experts charge as much as $250 an hour for a consultation, our tax relief company lets you get started for free.
Contact us today at (877) 829-3535 for a FREE, NO OBLIGATION consultation with a professional tax consultant.
