What to do When You Can't Pay Your Taxes
If you're wondering what to do when you can't pay your taxes, you have a couple options. Even though you may not be able to take care of the whole amount right away, you can eliminate extras to save money and help to mitigate the penalties that might be forthcoming. When you find out how much you're going to be lacking for your tax payment, you might want to look into borrowing those funds or selling something to obtain them. These are both perfectly acceptable options, especially if you know for a fact that you're going to be getting some money in the near future.
Any items that you want to sell can be listed in several ways as long as you have a fair price on them. Then, you'll have more of a chance of someone actually taking a look at them. Once you have this money in hand, then you can make a larger payment towards your balance. Remember that the larger the payment you make, the lower the penalties will be for any remaining amount that you owe. If you're able to earn enough to pay off the whole thing, then that's even better.
Using Credit Cards for Payment
Another tool to use when you're trying to make a payment towards a tax bill is your credit card. If you have a low interest card that has a balance available on it, then you could put a portion of your taxes on that card. This would keep you from being penalized by the IRS, even though you will still owe the credit company. It's often much easier to owe these establishments because the rates they charge aren't quite as astronomical as the Internal Revenue Service.
Remember that as part of the process to help you get your taxes figured out, the IRS also offers payment plans. If you agree to pay a certain amount each month, then you can get caught up with them. Of course, they will be charging interest on the remaining balance during this time, but at least it will keep them from putting a levy on your house or property. It also shows them that you're not trying to avoid this bill but are just trying to get through some difficult circumstances.
Borrowing from Family or Friends
For those who are going to borrow from friends or family members, this will be okay as long as you pay it back soon. Many relationships have been ruined because money has been brought in and unfortunately, these relationships have been messed up too badly to repair. However, as long as the person lending the funds understands that you may need some extra time to pay it back, then you will have a clear plan. This will keep anyone from getting upset over late payments or other problems that go along with a tax bill.
There are options for you when you are figuring out what to do when you can't pay your taxes and it's worth the effort to find out how they would work with your situation. If you have a full and clear picture of how you can get through this, along with a plan, then it will be a little less stressful for you and your family. Also, you will find that just having a plan laid out will give you a goal to work towards each month, and you'll stay on track towards getting this tax bill out of your hair once and for all.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia