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Cant afford tax bills, what should and what can you do; Received a higher tax bill from the IRS? You are not the only one or the first person who is having anxiety because of a high tax bill in the United States this year. Black Ink provides the answers to your panic questions including how to pay high taxes this year, how to reduce the taxable income this year, and even how to pay taxes at tax time when the money is short. If you are among those who are unable to afford their tax bill this year, then book an appointment with us, we can help you in the best possible manner so that you do not skip your taxation cycle.
Update: So that’s what you have to do if you can’t pay taxes in the year 2020.
Ways to Pay Taxes When You Don’t Have Cash:
There are a lot of ways to pay your taxes in the United States and stay complaint to the Internal Revenue Service as failing to pay your taxes can let you fall in severe penalties and high fines from the taxation agency. To handle the situation, you can choose any of the given methods to pay your high tax bill in USA when you don’t have money.
1. Refinance Your Mortgage:
Refinancing is generally the replacement of an existing debt obligation with another debt obligation under specific terms and conditions. Although, replacing an existing debt with another one is not a good idea but there are certain circumstances where the IRS itself recommends of refinancing of mortgage, home, etc to the taxpayers in USA. You can choose to refinance your mortgage or refinance your home if you have equity for the resolution of the outstanding tax debt on your side. Mortgage rates are relatively low as compare to the credit card interest, which we will discuss later. It means that your home mortgage interest can be deducted on your income taxes if you itemize it. Refinancing is really a very crucial step so it requires a professional assistance that can make sure that you really can afford refinancing in your current financial conditions. Request callback from Black Ink to know all the details about cash-out refinance pros and cons, its tax implications as well as refinance rates according to your specific state in the United States.
2. Pay Taxes by Credit or Debit Card:
If you can’t pay the taxes you owe, then the IRS presents the facility to pay your taxes by using your debit or card. You can easily pay your federal income taxes in USA with this option if you have the time issue. It means you have money but for the time being you are out of cash. All main credit/debit cards including American Express, Discover, MasterCard, or Visa are accepted by the IRS. It is a good option as the IRS does not charge a fee for credit card payments. However, the processing companies of credit and debit card do charge a fee i.e. from 1.88% to 2.35% and these amounts are slightly varied from those taxpayers who choose to e-file their taxes. In this regard, the IRS also mentions the benefits of e-filing tax returns & EFTPS to the taxpayers in USA. Contact us to get help on how to pay your taxes using credit or debit card via phone. From best credit card to pay taxes to all pros & cons of paying taxes in USA, we provide complete information to our clients.
3. IRS Installation Payment Plans:
You can also set up IRS payment plans for taxes if you can’t pay your high tax bill. The IRS payment plan is an agreement between the taxpayer and the IRS to pay the taxes he/she owes within an extended time frame. A payment plan can be requested if the taxpayer thinks that he/she will be able to pay the taxes in full within the extended time frame. If the taxpayer qualifies for a short-term payment plan, then he/she will not be liable for a user fee. You can pay your taxes in installments with a variety of IRS payment plans that include Pay Now, Short-Term Payment Plan, Long-Term Payment Plan (Installment Agreement) and Change an Existing Payment Plan. Call us now to get the details about IRS tax installment payment plans including payment plans types, its costs and setup fees, penalties & interests, eligibility for waiver or reimbursement of the user fee, qualification as low income taxpayers status, balance & payment history access. If you want to apply online for IRS payment plans, you can seek for or assistance to smoothly cover your journey towards a tax-free life in USA.
4. New Offer in Compromise (OIC) Program:
The taxpayers in the United States can now settle their tax debt for less than the full amount you owe by getting the Offer in Compromise (OIC) Program. Become eligible for Offer in Compromise and get it accepted by the IRS to cut your tax bill to the half amount. In this regard, the IRS considers a lot of the life circumstances of the taxpayers that include payment ability, expenses, income, assets, etc. the IRS only agrees to grant an OIC to taxpayer if the agency determines that amount due cannot be collected within a rational period of time. If the taxpayers do not file all required tax returns with any mandatory estimated payments, then their newly filed Offer in Compromise (OIC) application will be returned by the IRS. Furthermore, the IRS will also return application fee included with the OIC. If the taxpayer is in open bankruptcy proceeding, then he/she is out of the eligibility criteria. Ask Black Ink that whether you are eligible for an Offer in Compromise (OIC) program; we can further guide you to choose among lump sum cash and period payment options of OIC program.
5. Ask For More Time, Temporarily if cant afford tax bills:
If the taxpayers only need a little of the additional time for making their tax payment to the IRS, then they can request it by calling at 800-829-1040 (individuals) or 800-829-4933 (businesses) or by applying for online payment agreement. An additional time of up to 60 to 120 days can be granted if the circumstances do not conflict with the application. The IRS not only provides extra time to pay your taxes but also temporarily removes issuing levy and notices to the concerned taxpayers.
To get rid of all such problems, plan your taxes with best professional help in USA. Not only planning, Black Ink also provides the accurate on-time filing of taxes in USA to the local, state and federal authorities. From individual to business clients, we are a reputable name among the foremost taxation & accounting services providers of the United States. So that was all about if you cant afford tax bills.