In our last blog we went over the first couple of steps that you should take to get back on track if you failed to file your taxes. We discussed filing your taxes right away, even if you can’t afford to pay them, as well as paying whatever you can or setting up an installment agreement. The following is the remaining tips from our Maryland tax attorney to get you back on track and in the good graces of the IRS:
If an installment agreement is not in the cards for you and you simply cannot pay for your taxes, one option might be to borrow the money. If you pay your bill in-full you can avoid interest and penalties from the IRS. If you can borrow the money from a family member or a friend, you could be saving yourself from paying any interest at all. The IRS also accepts payments from credit cards.
If you owe back taxes over several years time that you just can’t pay, it might be time to consider an offer in compromise. This is a negotiation that may allow you to pay less than half of what you owe. These are complicated to file and even more complicated to get approved; it is important to rely on an experienced tax attorney in Maryland for this process.
- The final tip that we have for you is to make a plan for next year’s taxes today! If you are a small business owner or you are self-employed, you may want to consider paying your taxes quarterly. If you are employed, you might consider adjusting he deductions on your paychecks. You may not have as much every month, but it will save you from owing a large amount come tax time.