What are the alternatives for not paying your taxes?
What are the alternatives for not paying your taxes
?For the year 2011, the consumers are going to get the benefit of an extended time to file and pay their taxes .Whether it is a lay off or managing debts through the debt management services, there can be several reasons for the consumers to fall short of paying their taxes. However, the important thing is to look for alternatives to pay the taxes. It is commonplace for people to think about not filing the taxes at all. While it may give you a lot of comfort to bury your head in the mud, but sooner or later you will have to file your taxes; moreover, not filing them at all could mean that you could get penalized in a hard way. The other reason for you to file the taxes, even if you can't pay is that the IRS can prepare your returns; keeping in mind that the IRS will not work in your favor, it is likely that you could get a punch on your head by not getting the deductions and credits. Consequently, your tax bill could go higher along with the penalties and the fees for not filing the taxes. In the end, you will have to pay 20% more on your tax bill. Therefore, in order to save the penalties and the interests, the safest bet is to file the taxes and pay as much as possible. However, an extension still implies that you will have to file and pay the taxes on the stipulated date and time; but if the tax deadline is knocking your doorstep and you do not have enough money to pay, here are the following alternatives:
The IRS may allow you an extension of 30 to 120 days to pay the taxes; a request for an extension will charge you lesser for the penalties and taxes than for an installment plan.
The next option is to ask the IRS about a payment option which will allow you to pay the taxes in the form of monthly installments. However, if your comprehensive tax is equal to $25,000 or more including the penalties and interests, you are eligible to complete the Online Payment Agreement or OPA; but if the taxes are more than the abovementioned amount, you will be required to complete a Collection Information Statement or CIS. The IRS will then decide on the amount of taxes you can pay, on the basis of your monthly expenses.
Another option is to secure a loan or to utilize the emergency fund; but getting into a new debt will probably not be a favorable idea but you could still consider this idea to pay off your taxes.
There is another method called as an offer in compromise, which is an agreement between the consumer and the IRS. Under this offer, you can settle your tax payments for a lesser amount than the original. However, it is less likely to be accepted if the IRS has doubts about the fact that you will eventually pay the tax debts.
In the end, it is worth mentioning that instead of fiddling around with the norms of IRS, it is better to pay your taxes and live a life of comfort.
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