Erroneous Tax Fraud Charges Can Still Hurt Business Owners On behalf of Brian Coggins of Coggins Law Office posted in Tax Evasion on Thursday, June 11, 2015. In today’s media-saturated culture, anyone can be quickly and harshly tried in the court of public opinion. Criminal charges, no matter how unfounded, can hurt a person’s reputation and compromise […]
Tax Fraud vs. Negligent Mistakes: How Does the IRS Decide? On behalf of Brian Coggins of Coggins Law Office posted in Tax Evasion on Thursday, April 30, 2015. In our post last week, we began a discussion about how the Internal Revenue Service decides which taxpayers should be audited. Although some government studies have determined […]
Is Your Profession a Factor in Whether or Not You Get Audited? On behalf of Brian Coggins of Coggins Law Office posted in Tax Evasion on Saturday, April 25, 2015. If the Internal Revenue Service decides to audit you or your business, you may be wondering why they chose you. What information raised red flags? […]
We’re now less than a week away from the filing deadline for federal tax returns. Many of us procrastinate when it comes to filing because we have seemingly more important (or more entertaining) things to do. But others procrastinate right past the deadline for a more serious reason: they don’t have the money.
If you can’t afford to pay your taxes, it may be tempting to just not file a return. You might assume that the IRS handles millions of returns and probably won’t notice that yours is missing. Unfortunately, this approach rarely works, and the consequences of getting caught are severe.
So what’s the solution? Believe it or not, proactively communicating with the IRS may your best bet. The agency offers a couple of extension options which are free and relatively easy to get approved for. But these extensions just delay the inevitable. And if you don’t have the money to pay in full now, you may not have the money in four to six months.
You can also apply to set up an installment agreement that allows you to pay off your debt over time in monthly payments. This is subject to IRS approval.
Finally, you may be able to settle your debt for less than full value with what’s called an offer in compromise. This tends to be the trickiest option, however, and the IRS rejects many such offers.
Whether you owe back taxes already or are unable to pay what you owe on this year’s return, working with the IRS will almost certainly be better than burying your head in the sand. But even before contacting the IRS, you may want to discuss your case with an experienced tax law attorney who can explain your legal rights and options.
Source: Daily Finance, “Can’t Pay Your Taxes? How to Get IRS Relief,” Dan Caplinger, April 10, 2015