Tax Tip Tuesday: When you need to file, but can’t pay your return off all at once.
Tax day is just two weeks away and we are giving you the low down on what people can do if they owe federal income taxes, but can’t pay them off all at once.
A lot of people who may have waited until the last minute may feel like there’s no point in filing this year, but as Bill Brunson told us, even if you know you owe a lot of money, it is vital to always file.
“So some people may think, gee, I owe this year, I can’t file. Well yeah you can. You want to, because then you won’t have a late filing penalty. If you haven’t filed in previous years because you owe and you think you just can’t do it. Contact the IRS and we’ll work with you. We’ll want you to file those returns, so we know the exact amount due, but then we can take that payment information and work you into a payment arrangement,” said Brunson.
Brunson also added that if you owe money to the IRS, they have a minimum of ten years to collect, unless there is fraud involved and then there’s no time limit. The best advice is to always file the return in a timely manner, but know that if for some reason that isn’t possible, the IRS will do their best to work with you.
