The 2015 tax bracket for a married couple filing jointly was 15% for families who earned between $18,451 and $74,900. While 15% may not sound like a lot of money, it really is when you consider the fact that the government wants their money as soon as possible. It can be very stressful if you have IRS tax debt. You have to understand that this is not an ordinary bill that you can ignore for a few months until you have some extra cash. It must be paid. The government can even garnish your wages if you are not paying your tax debt on time. Owing back taxes to the IRS can be a real problem for families that are struggling just to keep the lights on. The good news is there are some things that you can do in order to take care of this debt.
One of the first options you have when it comes to paying your IRS tax debt will be to pay it all, when you file your taxes. If you are planning on filing your taxes on time, and you have the money that you owe, you would be a lot better off simply attaching a check with your filing and mailing it all at the same time.
This will decrease your concerns because you will not have to worry about paying it back later. Some individuals will make the decision to pay with a credit or debit card. The IRS assesses steep interest on taxes paid late so sometimes it’s better to pay a lower interest rate and carry the debt on a credit card rather than letting tax debt remain unpaid with the IRS.
There are a lot of people that believe they can ask for an extension, and file their taxes late. This is true. You do have the option to do that. However, this is not going to give you any extra time for you to pay the amount that you owe. Even with an extension, you must provide an estimate of what you will owe and send that into the IRS before the first due date. You will most likely face penalties, and late fees as well, if you are not paying what you owe on time.
If you know that you can’t pay your IRS tax debt, file for a payment extension. This is only going to give you an extra three months to pay. You must be able to pay the entire amount within that time plus the interest and penalties that have been added. Your final option is to contact a tax attorney to represent you and petition the IRS to set up an installment agreement that allows you to break your tax debt down into regular monthly payments. This can ease the burden of tax debt and allow you to meet your obligations without sacrificing your ability to pay your basic living expenses. To learn more about your options to manage tax debt, contact an IRS tax relief attorney today.