I have to pay my personal taxes for this year, unfortunately i don't make enough money for everything, and ain't gonna be able to pay them this year. Does this affect my credit? What happens?
2007-10-15 04:38:47 · 5 answers · asked by etmaule 2 in Business & Finance ➔ Taxes ➔ United States
Your paycheck gets garnished or your assets get seized. Not sure what happens to your credit.
2007-10-15 08:08:59 · answer #1 · answered by StephenWeinstein 7 · 0⤊ 0⤋
Are you talking about income taxes? If you are an employee, be sure to have enough withheld and you won't have to worry about it. If you are an independent contractor, set a reasonable percentage aside and pay it in as quarterly payments.
But OK, that's nice advice but not very useful for this year. File anyway - you'll still pay some penalties, but there are additional penalties if you don't file on time. If you can't pay what you owe, the IRS will set up a payment plan for you to get it paid off.
2007-10-15 06:20:55 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
What you need to do is to set up a meeting with an irs agent and work out a payment plan. Normally they will work with you, if you do not put forth an effort to address this issue this is when your life can be made hard. Another thing do not even think of filing bankruptcy on taxes, this cannot happen. Your tax liability must be paid or another thing that may happen is that they will garnish your wages and any money that you have in your checking accounts. Find your local irs agent and set up a meeting and discuss your situation with them.
2007-10-15 04:52:27 · answer #3 · answered by Rooster 1972 5 · 0⤊ 0⤋
How much do you owe? If it is over $5,000, IRS may file a Notice of Federal Tax Lien which will affect your credit. If you cannot pay and IRS agrees, your account can be reclassified as currently not collectible until your situation improves. If you will never be able to pay what you owe but can get your hands on a lump sum for part of it you may be a candidate for filing an offer in compromise. You can email me privately through my profile for more information about that possibility.
2007-10-15 06:25:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋
What "personal taxes" are you referring to? Contact the taxing authorities and make a payment arrangement.
FYI, you must budget for your taxes FIRST. Everything else comes second, even shelter and food.
2007-10-15 05:28:50 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 1⤋