Tax Bills Loom On The Cusp Of Holiday Spending
Free publication outlines options when owing the IRS
For Immediate Release: January 27, 2005
ROCKVILLE, Md. — Right after the bills from a holiday season of spending and splurging have arrived in the mail, many Americans are about to receive another blow to their wallets in the form of a large tax bill from Uncle Sam. But while a bill from the Internal Revenue Service can cause panic when a refund is expected, there are ways to satisfy your tax duty if you don't have the cash to pay up front.
"Despite the reputation the IRS has about being a cold-hearted government institution, they offer many different options and will work with you when you can't afford to pay your taxes," said Steve Rhode, president of Myvesta, a nonprofit consumer education organization. "As long as you are up front and honest about your situation and your taxes aren't past due, you should be able to work out a mutually acceptable agreement."
One of the most common ways to deal with the IRS when you can't afford your tax bill is to work out a payment plan to pay your taxes over time.
"When filing your taxes make sure you send along an Installment Agreement Request, Form 9465, with your taxes and make sure you specify how much you can pay each month and the date you want your payment due," Rhode said. "If your request is approved, the IRS will charge you a set up fee, a monthly penalty charge and interest on the unpaid portion of bill. Through a plan like this you will typically pay your taxes over a three to six year period."
More options for paying a tax bill are outlined in the Myvesta publication "How to Deal with the IRS if You Can't Pay Your Taxes." It can be downloaded free online from Myvesta.org.
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MyvestaSM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.
