| Owing back taxes to the IRS is much more common | | | | average person can go through their old stuff and |
| than most people think. Every year tens of thousands | | | | receive a thousand dollars or more from stuff they no |
| of people cannot pay their taxes. Most individuals | | | | longer need. |
| continue to increase the amount of taxes owed | | | | 5. - Pay on credit. Be careful with this one. You don't |
| because they don't work with the IRS to resolve their | | | | want to carry the balance for too long. The interest |
| problem. When an individual does not pay the taxes | | | | rate on credit is way more than the interest you would |
| owed, the IRS will tack on interest and penalties until | | | | pay if you setup an installment agreement with the IRS. |
| they resolve their tax issue. Many people don't realize | | | | 6. Setup an installment agreement with the IRS The |
| that there are many options for paying back taxes, | | | | IRS will allow you to pay back the taxes owed in |
| even when you cannot afford to pay. Below are | | | | monthly installments over a period of less than 3 years. |
| some options to consider in order to pay back taxes. | | | | 7. File an Offer in Compromise You may be able to |
| | | | settle and pay far less than you owe if you can prove |
| 1. Pay Tax Amount in full This may sound like the | | | | you don't have the means to pay and it is very unlikely |
| obvious option, but here are some methods that | | | | that you will ever have the means to pay. |
| people normally don't think about. | | | | 8. File for an extension to pay This may be a good |
| 2. - Take out a home equity loan and use the money | | | | option for you if you just need to buy some more time |
| to pay the taxes owed. With this method you will | | | | to gather the funds to pay. |
| transfer your tax debt into your mortgage payment | | | | No matter what your financial situation is, you can |
| and you will be paying a low monthly percentage on | | | | always work something out with the IRS. The worst |
| that debt. | | | | thing you can possibly do is not file your taxes |
| 3. - Borrow from friends and family. This is only a good | | | | because you know you cannot pay. Not being able to |
| option if you know you will have the funds to pay | | | | pay is OK in the eyes of the IRS, it is failing to work |
| them back in the near future. If you will not have the | | | | with the IRS that is not OK. There are so many |
| funds to pay them back, it is much better to go with | | | | options available for paying the IRS back, even if it |
| another settlement or payment method to pay the IRS | | | | means showing them you can't pay and being |
| back. | | | | declared uncollectible. If you owe taxes and can't pay, |
| 4. - Go through your garage and sell some stuff on | | | | it is highly suggested you contact a tax professional to |
| Ebay. Do you have an assets lying around that are | | | | help you. Tax professionals are trained to find you the |
| valuable that you can sell? Ebay is a great place to | | | | best deals for your financial situation and to save you |
| post things up and see how much you can get. An | | | | money. |