What should a person do if they cant afford to pay taxes they owe?

Answer 1

If you can't afford to pay it all at once, then they'll let you make payments, but you'll get pentalized like 1 or 2% for each month you don't have it paid in full.

One of my jobs wasn't taking federal taxes out for a whole year, so I owed almost $400 one year. I didn't pay it at all, so it got taken out of my next year's tax return, from my federal and state return.

Answer 2

First work it out with the mullets that work down at the IRS. They want money, they don't want to throw you in jail. Next, correct the situation that got you in trouble in the first place.

Self employed - put back 25% of your money and pay those taxes quarterly.

Work for a company - change your W-4 to single with 0 dependents. Take out max taxes. This works for me. I have been working since 1974 and have never owed at the end of the year.

Or if your in a really bad situation you may consider consulting a tax attorney. Most lottery winners need to go this route.

Answer 3

You seem to have offered into the thought all and sundry Republicans are "wealthy." you in addition to could look parroting this tax cuts for the wealthy, advance tax expenses on the wealthy meme that the administration has positioned available. enable's positioned it this sort, in case you confiscated all the money of all the individuals in the U. S. incomes a hundred,000. and above ( no longer purely a marginal tax fee) it might nonetheless no longer pay for even 300 and sixty 5 days of government spending. you will possibly nonetheless be short by potential of 30 billion and the different 14 plus trillion plus different unfunded liabilities might nonetheless be there aspiring to be paid. The so called "wealthy" already pay a great disproportionate volume of the tax in this u . s .. in case you desire to speak approximately honest- that may no longer honest. They conceal a great form of the burden as that's now. How loads of each and every dollar do you like the government to do away with from each and every citizen. And as i'm useful you comprehend the government spends income a horrendous, spendthrift and each so often obscene way. look at what a great form of the so called stimulus funds went in direction of. the place will all of it end?

Answer 4

Depends on how big the debt is. If it's in the hundreds of dollars, yo ucan pay it off over a short time with interest & penalty (interest is about 9% per year, penalties are 6% per year, up to a max of 25%.

If it's in the thousands, you can get a formal payment plan up to 36 months.

If it is a multiple of your annual income, you need to hire a tax pro for options.

WealthBuilder
Enrolled Agent /.Tax Specialist

Answer 5

File on time anyway. Call the IRS about setting up a payment plan - they do that all the time. You'll pay interest, but if you don't file on time, there will be additional penalties.

Change your withholding allowances (W-4), or file quarterly estimated, so this doesn't happen again next year.

Good luck.

Answer 6

option 1:pray hard. option 2: contact irs about possibility of making payments (only if the amount is reasonably small) option 3:retain an accoutant who is an enrolled agent ;meaning they are authorized to practice in front of the irs as your representative

Answer 7

Key is to not run & hide from the IRS letters. Let them know you can't pay all & pay SOMETHING. Ignoring the only bad strategy.

Answer 8

The IRS will let you treat them like Capital One and pay them on a revolving basis, but I would not want them, "in my wallet"!

Answer 9

Run. Change your name. Don't answer the telephone. Lock your doors.