Financial Crisis: Unable To Pay Tax? Here’s What You Need To Do!
You can’t deny the fact that it is your legal and moral obligation to pay the IRS (Internal Revenue Service) the amount you owe. Otherwise, you can get into huge trouble. However, it isn’t necessary that you are always in a financial condition to pay. Like how all fingers are not the same, your life scenarios don’t have to be the same every day. With the passage of time and some unavoidable incidents, your mental, physical and financial condition can get affected. And that is okay! Yes! You read it correctly! It is okay if you are not in a situation where you can pay the levied amount. But it doesn’t mean that you should totally ignore the importance and authority of the IRS.
“Tax is not just a three-letter word; rather, it is a price that we pay for the country that we want.” – Alex Himelfarb.
You can’t deny the fact that it is your legal and moral obligation to pay the IRS (Internal Revenue Service) the amount you owe. Otherwise, you can get into huge trouble. However, it isn’t necessary that you are always in a financial condition to pay.
Like how all fingers are not the same, your life scenarios don’t have to be the same every day. With the passage of time and some unavoidable incidents, your mental, physical and financial condition can get affected. And that is okay!
Yes! You read it correctly! It is okay if you are not in a situation where you can pay the levied amount. But it doesn’t mean that you should totally ignore the importance and authority of the IRS.
Instead of doing that, you need to be wise and act accordingly. Besides, we are also here to help you out! We understand that you might be worried about the IRS penalties. That’s why you need to read this article and learn what you can do to safeguard yourself.
Let’s dive right into the measures!
Don’t Panic And File Your Tax
First things first, you need to breathe and calm down. This isn’t the right time for you to get panic and create several utterly meaningless scenarios in your head. Believe it or not, but none of those scenarios are going to be true.
Now, kindly read whatever we are going to tell you carefully and with undivided attention.
Various people who are in similar situations as yours make the mistake of not filing the tax return. DON’T DO THAT! No matter what your current situation is, you must file a return before the deadline. It is the very first and most crucial step that you should take, so avoid future troubles.
Hire A Lawyer
The next thing you need to do is talk with the IRS department and explain your situation to them and why you can’t pay the levied amount. This part can get hectic; negotiating with them isn’t easy at all. That’s why the experts at Silver Tax Group suggest taking the help of a tax attorney. She/He is professional and experienced, thus knows how to resolve your issue and protect you.
Besides, if you have a lawyer by your side, you’ll be able to explain your situation without any stress. And along with the evidence that speaks your truth.
Discuss Emergency Debt Relief Plans
Lastly, you need to come up with a debt relief plan to overcome your liability. Discuss with your lawyer and then with the IRS the plan you find suitable. Nonetheless, the generally used plans are a “Monthly Installment Plan” (If you think your situation will improve and you can pay back eventually) and “An Offer In Compromise” (If you can’t pay the total amount but can settle for less liability).
To Conclude
Now that you have read the whole article, we suppose that you are relaxed and fully aware of the steps you can take to safeguard yourself. Nonetheless, understand that tax is levied for your benefits and is not torture to you. Thus, you don’t have to be scared of it.