We all should be getting our taxes done and there are many who may already have their taxes finished. There are also some of us that may owe the IRS money and maybe thinking……WHAT IF I CAN’T PAY WHAT I OWE?? Not being able to pay the federal income tax you owe can be a scary feeling. Don’t panic! Being proactive and communicating with the IRS as soon as you know there’s a problem can help you manage the situation and minimize any penalties, interest charges and fees for not paying on time. So you’ve done the math(or are just guessing), and you know come Tax Day you’re going to owe money you just don’t have right now. What should you do if you can’t pay your taxes by the filing deadline for federal income tax returns? Let’s start with four things you SHOULD do:

1- PANIC: it solves nothing. Plus, you do have options.

2- IGNORE THE PROBLEM: Your tax bill isn’t going to go away on its own, and neither is the IRS.

3- WAIT: If you don’t pay your taxes on time, you will definitely get a bill from the IRS. And it will come with fees and penalties on top of what you already owe.

4- FAKE IT: While not paying your taxes on time almost certainly won’t land you in jail, tax evasion can. Faking information on your federal income tax return in order to reduce or eliminate the amount you owe can result in severe consequences. Be sure to file your tax return by the due date. The IRS wants you to be able to pay your taxes. In fact, the IRS provides multiple options for paying your tax bill. Installment agreements are the most common arrangement when you can’t pay your taxes on time.

Bottom line…..When you know you can’t pay your taxes on time, it’s crucial to be proactive. Initiating a conversation with the IRS, whether online or by phone, 800-829-1040, it could help you minimize or even avoid interest, fees, and penalties. If you also feel as if you can’t pay your state income taxes, contact your state tax agency to find out what your options are.

We, here at Red Rock Tax & Consulting, know the stresses of taxes. Don’t stress we can help! Let us help you understand your options so that your money and income is working for you. Call us for your free 30-minute consultation and let us take the stress away. Taxes are scary but they don’t have to be if you’re prepared and have the knowledge to keep your money working for you. Call us today 435-635-2494 From all of us here at Red Rock Tax & Consulting we hope you have a fabulous day! And know that… At the extra mile, we are just getting warmed up!

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