Nearly 80 percent of all people who file an income tax return receive a refund from the IRS. What happens if you are one of those 20 percent? What if you have overdue taxes that need to be paid? There are some things you can do to prepare and to help you if you do indeed owe the IRS money.
Consult A Tax Professional
Make sure your income tax return is correct. If you haven’t done so already, have it reviewed by a professional to be sure that you have not made a mistake. If you do end up owing the IRS, there are several things you can do.
Additional Time To Pay
One thing you can do is to request more time to pay your balance. While the IRS will not grant you years to pay your tax bill, you can receive a few weeks or a few months extra to pay your bill. The IRS has an online payment agreement application that can be filled out to request additional time.
Pay With A Credit Card
Many people are unaware that they can pay their tax bill with a credit card. If you do not pay, you will be subject to penalties and interest. Those penalties and interest payments are most likely much higher than the interest rates on your credit cards.
Request An Installment Agreement
If you will not be able to pay the full amount of your tax bill, you can request to pay it in installments. You must complete and file your return first. You will need to be current with any previous year tax payments or estimated taxes. You can fill out the installment agreement application, which will allow you to pay a certain amount monthly until the balance is paid in full. Most installment agreements are granted if the applicant is in good standing with the IRS.
Take Out A Car Title Loan
If you have a vehicle that is paid for and the title is clear, you can use the equity in it to access the cash necessary to pay off your tax bill. Companies like Embassy Loans have helped thousands of people get their hands on the cash necessary to get out of a financial jam. Car title loans do not require background or credit checks and, as a result, do not take as long as a traditional loan to process. At Embassy Loans, most car title loans are in less than an hour. Borrowers get their hands on the money they need quickly. Once received, the money can be used to pay the IRS.