Finding a Second Job to Pay Off Tax Debt
Finding out that you owe the government money for taxes may be a serious financial concern, but it doesn't have to put you into an emotional tail spin. Before choosing debt consolidation, there are ways to handle the situation responsibility as long as you take action right away. Finding a second job to pay the tax debt is one of the options that are available to you so you can pay the debt when it becomes due.
Jobs are hard to find, even part time employment opportunities. So many people are looking for work that every opening has a huge response of qualified, and even over qualified responders. Consider picking up the extra income by doing freelance work. You can also pick up extra money by finding jobs mowing grass or shoveling snow.
When you take on a second job, it will mean that you have to make some sacrifices. You'll miss out on some dinners with the family and other family events. If your children are socially active, you may not be able to continue to take them to their activities and could miss out on their sporting events or after school functions. Your time with your own friends and pursuing your own entertainment will be drastically curtailed.
Before you start and during your search for a second job, file for an extension on your taxes. The additional time may make it easier for you to save up the money to pay the debt, especially with the additional income of your part time employment.
When It Is Not Enough
If you are sure that an extra job in addition to an extension won't make timely payment possible, call the IRS and explain your situation. Know how much you will be able to pay by the date the tax is due. If you ignore the situation and miss the deadline, penalties and interest will kick in, making the debt even larger.
The IRS may offer you an agreement that will allow you to pay the debt off completely in 60 or 120 days. If you qualify for that and know that you will be able to meet your requirements to pay you will not be penalized further. A second job could help you meet the deadline.
If you don't qualify to extend the due date in order to make payment in full, ask for significant hardship considerations such as a temporary delay in the collection process. Although it is another option to give you some extra time to come up with the money, the debt will grow because this option doesn't waive the penalties and interest of late payment. The government may file a Notice of Federal Tax Lien so that their interests are protected.
It's not true that you can't negotiate with the IRS. In some cases you can settle for less that the entire amount. An offer in compromise is a legitimate option if you can show that you won't be able to pay the tax debt or if you did pay it that it would leave you in a state of financial hardship.
An offer in compromise is considered on a case to case basis. Finding a second job to pay off tax debt might be something you can avoid. The IRS will take into consideration not only your ability to pay, but your asset equity, income and expenses. If the IRS determines the offer is the most that they can collect in a time frame that is reasonable, they may accept the offer.
Tips Cutting Your Tax BillGetting tips for cutting your tax bill before you file a tax payment extension can be...
Tax Tips Individual InvestorsLearning about tax tips for individual investors is an effort that will make sure you...
Correcting Inaccurate Tax ReturnCorrecting an inaccurate tax return is important so you don't end up getting flagged for...
Changing Jobs For Higher SalaryIf you're considering changing jobs to avoid small business tax payments or make a higher...
Deciding To Quit Your JobMaking the decision to quit your job is one you need to do carefully because there should...
Small Business Tax ObligationsIf you are starting a small business you should know that there are many expenses and...
State Guides to Credit Card Laws
- North Carolina
- West Virginia