It’s something many of us are guilty of—neglecting to file our taxes. Often, time flies by, and next thing you know, you’re several years behind. Oops!
Like an elephant, however, the IRS never forgets, so if you owe them money in back taxes, they’re going to want to collect it as soon as they can. But what if you’re short on cash?
Don’t worry—there are plenty of options when it comes to paying your IRS back taxes. Keep reading to find five ideas for getting your tax debt paid quickly.
1. Request an Extension
If you’re done with filing taxes but are struggling to make the payments, you might qualify for a tax extension with the IRS.
You can specifically request an extension not on your filing, but on your payments themselves, giving you a bit more time to get the money together. You can find all of the details on the IRS website, but a professional accounting firm can also help you sort this out.
2. Set Up an Installment Agreement
Do you need a payment plan for your tax payments? If so, IRS installment payments are available through their installment agreement system.
This lets you pay your bill in small amounts each month, making it more affordable for many taxpayers. It’s also part of the IRS Fresh Start program, designed to help individuals and families who are struggling with their tax—a qualified tax firm like Silver Tax Group can help you learn more.
3. Withdraw From Another Account
If you have access to other savings accounts, such as your 401K, it might be an option to take money out from these accounts to cover your back taxes.
While there might be a small administration fee for the early withdrawal from your 401K, it at least allows you to pay your taxes in full and get it done.
4. Use Your Credit Card
If you have access to a credit card, this can be an effective way to pay your back taxes quickly. Of course, you don’t want to max out your credit card, but if you have a card with a generous limit, paying your taxes by card can help you get it done with quickly.
Then, you can make monthly payments back to your credit card to pay off the bill, rather than having to set up a payment plan with the IRS.
Handle Your IRS Back Taxes With These Tips
Dealing with IRS back taxes can be stressful, but for your own peace of mind, it’s good to get them paid off as soon as you can. Using the tips above, start thinking about which payment method would be best for you.
However, if you’re really struggling and are feeling stressed, always speak to the IRS or with a professional CPA, explaining your situation. They can talk you through all of the options, helping you find a solution that works for you.
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