Tax time isn’t the most enjoyable part of spring, especially for those who end up owing the IRS. It can be even more dreadful if you can’t afford to pay everything that you owe. The IRS can decide to hit you with interest on the balance due, and they may even assess a late payment penalty. If that happens, you’re stuck paying even more money than before. Read below to learn what to do if you find that you owe taxes and can’t pay them.
If you are struggling with your finances, you should call Cleveland Bankruptcy Attorneys. Our Cleveland tax debt attorneys can go over your bills and help you determine if you could benefit from a debt relief program, or if your best move is to file for bankruptcy.
Call us today at (216) 586-6600 to set up a free consultation about your case.
I Can’t Pay My Taxes – What Are My Options?
If you are unable to pay your entire tax bill at once, you have a couple of options:
- Use a credit card or get a personal loan to pay what you owe – This choice may seem unsavory since you’re just trading one debt for another. But, this option should be considered, primarily if you can secure a loan or credit card with a low-interest rate. The interest you pay may be considerably less than interest and penalties the IRS charges.
- Request a payment plan from the IRS – You can ask the IRS for a payment plan to pay off your debt in monthly amounts without the fear of being sent to a collections agency. These payment plans can be short-term or long-term. Short-term plans don’t have an application, but the IRS offers form 9465 for people who need the long-term payment option. While a payment plan alleviates some stress, you need to be aware that it will not save you from paying penalties and interest, and you may even be charged a set-up fee, depending on the plan you choose.
- Consider filing for bankruptcy – Understand that personal bankruptcy will not eliminate your IRS debt, but it can get rid of other debts, which frees up your money so you can cover your tax obligations. Filing for bankruptcy may be an option if you have too much debt and can’t make headway on any of your bills. A Chapter 7 bankruptcy can discharge much of your unsecured debt and leave you able to start over in as little as four months. A Chapter 13 bankruptcy reorganizes your debts, so you can pay one affordable amount every month, and get your bills paid off in three to five years.
Call a Cleveland Tax Debt Lawyer Right Away
At Cleveland Bankruptcy Attorneys, we have helped many people with their debt problems. If you owe taxes and can’t pay them, or if you can’t afford any of your bills, call Cleveland tax debt lawyer Cleveland Bankruptcy Attorneys right away. We’ll discuss all debt relief options and help you decide your next best steps. For a no-cost consultation, contact us at (216) 586-6600 today.