Surprised by a Large Bill from the IRS? Here are Some Ways to Pay it Off
When tax season comes around, it seems like everyone is a little high strung. I think we can all agree that it’s not our favorite time of year. With that being said, if you are surprised by a high tax bill, there are a few things you can do to eradicate the situation.
Double and triple check
If you are especially taken aback by the dollar amount the IRS has demanded, you may want to double check the numbers. You may have left out an important deduction or the error could be on the side of the IRS. Just because they are the IRS, does not mean they are always correct. They can make mistakes just as easily as taxpayers can.
Request an installment plan
The IRS can be understanding when it comes to paying your taxes. If you can’t afford to pay the full amount you can ask for a payment plan to spread out the cost of your taxes. If you owe $25,000 or less, provide proof that you currently cannot afford to pay the full amount, or prove that you can pay off the debt in three years or less, the IRS is required to grant you an installment plan.
Borrow the money through a private lender
Applying for a loan to pay off your taxes is one of the smarter choices when getting rid of tax debt. Although you will have to pay interest on this loan, it may be a better choice than owing the IRS.. A respected private lender such as Jcap will be able to secure a loan against the property you own and will be able to pay your IRS bill within a week. This way you can rest, knowing that your tax debt is taken care of.
There are other solutions to this problem such as asking for an extension, but this will only give you an extension to FILE, not to PAY the fees. You will still need to pay your taxes on time even if you request an extension.
If you have any more questions about a loan for your tax bill, feel free to call Jcap Private Lending in Newport Beach, we can help.