When tax time is due and you have no money to pay them, you must borrow money to pay them. There is no way you can send a note to the tax collectors saying: sorry, guys, I spent all the money I made last year, had a great time at the French Riviera, but now I am broke. You find some way of paying them.
Let’s look at it this way. You must have earned the money inherited the money, or somehow come into contact with the money, otherwise your tax credit would not show the amount that you are now unable to pay. If there are mistakes in the tallying, no problem, make an appointment with the tax collectors and have it fixed.
But if there is no legitimate way you can back down now on the taxes owed, stand up straight, look yourself in the eye – via a mirror of course – and tell yourself you are an honest man, or woman. Admit to wrong spending on your part and make arrangements to borrow the money to pay your taxes. That is the only honorable thing to do. There is excellent advice on how to go about paying what you owe when your wallet is empty. The tips offered below were generated with an on-line supportive program:
*They suggest you can reach some type of installment agreement with the Internal Revenue Service. Others may refer to it a payment option, or a payment plan but what it means is that the government is not mean and is not out to send you to debtors jail, but will work with you in paying your taxes.
*Compromise. At least offer to compromise. This is a legitimate option that sometimes can be negotiated. Whatever excuse a taxpayer has for offering to pay less than what is owed, it must be a good one. If the plea is a right one, it could work. As a new business owner maybe you do have legitimate reasons for a settlement. What are the requirements for an OIC?
“To be considered for an OIC, you must submit an application with a $150 fee. In addition, a first payment for an installment payment plan needs to be included along with the offer for repayment or a 20 percent payment on a lump sum may also be required before the offer is considered.”
In addition to the above, every thing else must be in order, and no other bookkeeping exact and in accordance with their regulations. This is a genuine agreement and it shows the IRS is not a angry bunch out to fleece hard working individuals, but is a group of honest hard working accountants that want to make sure everyone is treated the same. They will listen if they believe in the proposition that is being put forth.
* A reasonable clause is another way a tax debt may be settled. This is known as a penalty abatement and when the plea for less taxes falls on the ears of understanding IRS employees, it might just happen that they are believed and the taxes might be reduced.
* Another situation might arise that a couple who filed taxes together now have divorced, or for some other reason, illness, living apart, whatever, one of the two claims innocence where taxes are concerned. If there can be sufficient reason to believe the claim is legitimate, then the particular party that is asking for help, may get that tax relief help. That claim is referred to as the innocent spouse.
The best way of taking care of taxes is to be aware of every facet of the business that will be taxed and making sure every reasonable deductible is claimed. It is easy to forget about these little day by day donations to charity, the extra effort put forth to make the community better, and these cost money. Keep adequate records and make sure you are taxed correctly. Money for taxes needs be set aside accordingly, so the problem arising from no money for taxes does not happen. But when an exception to that rule happens, know how to get the help needed.