Tax day—April 15—was just a few weeks ago, and most of you are probably just now finding out, or have already found out—the outcome of your tax return. Are you getting a return? Or do you owe the IRS money?
If you owe the IRS money but don’t have a way to pay it, you might be scared and overwhelmed. You’ve likely seen the news stories about the IRS going after delinquent taxpayers, and you don’t want to be one of them.
As a result, you might be tempted to use the services of a tax relief company. This type of company promises to settle taxpayers’ debts for a fraction of what they owe.
Unfortunately, most of these companies are a scam. They often charge a fee upfront for their services. But instead of doing what they claim, they make off with the taxpayer’s money.
The Federal Trade Commission says, “The truth is that most taxpayers don’t qualify for the programs these fraudsters hawk, their companies don’t settle the tax debt, and in many cases don’t even send the necessary paperwork to the IRS requesting participation in the programs that were mentioned.”
Don’t avoid filing your taxes or decide not to pay altogether because you don’t have the money to pay the tax bill in full. If you need help paying your taxes, you have options.
You can set up a payment plan with the IRS if you owe less than $50,000. There is a fee for this service: $52 for a direct debit agreement and $43 if your income is below a certain level. You can apply online or mail in Form 9465.
In some cases, the IRS may offer an extension for you to pay or some other compromise.
The IRS recommends that if you can’t pay your taxes, call 1-800-829-1040 to discuss your options.
If you are struggling with overwhelming tax debt and other bills and you don’t see a way out, please call an experienced Louisville bankruptcy lawyer. Most law firms, including Wallace Spalding Law Office, offer free consultations, which means that you can find out what your options are for getting out of debt without any risk or obligation.
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