Owe Money to the State? Here Is How We Can Help
Paying taxes is something we all have to do. But tax payments can be stressful, especially if the time comes and you don’t have enough to pay and are worried about filing for bankruptcy. This may happen because your job didn’t withhold state taxes as you got paid, you are self-employed, or you received unemployment benefits, which are taxed. If you owe money to the state, don’t panic. There are ways to fix this situation, no matter how bad it is. Here are some different actions you can take if you owe money to the state.
Talk to the IRS
This may be the last thing you want to do, but it can be worth it. Avoiding the problem won’t make it go away. If you can’t pay your taxes, you can set up a plan with the IRS to pay off the debt over a period of time in installments. This allows you to avoid the fees that will start accumulating on your account if you don’t pay on time. You can also request an extension from the IRS. This can either be a short-term extension (if you know that you will have the money soon) or a hardship extension. This is a longer extension based on a specific situation you are facing, like a job loss or natural disaster.
Try to borrow money
If you are already deeply in debt, this may not be the best thing to try. However, if you just owe money to the state and are confident you will be able to pay a similar amount in the near future, you can consider borrowing money to pay taxes. This could mean asking a friend or family member for a loan, digging into your retirement fund, or using a credit card. Paying off debt with debt can easily snowball, so be careful if you use this option.
Get your payment reduced
If you owe a lot of money to the state in back taxes, there is a chance you can get your payment reduced. This would require providing the IRS with additional financial information to prove that you are unable to make the payments. Getting payment reduced is difficult to achieve. You should find someone who can help you, whether that be a financial advisor, family member, or attorney. Don’t bank on your taxes being canceled, either.
File for bankruptcy
If you owe a lot of money in back taxes, you may consider filing for bankruptcy. All money owed to the state and federal government could potentially be eliminated, or at least reduced. This is a big decision that should not be made on your own. You should consult with a bankruptcy lawyer to decide whether or not filing will be helpful for your situation. A bankruptcy attorney can also help you understand how likely it is that you will win your court case.
Bankruptcy attorney near me?
Bartifay Law Office has been serving the greater Pittsburgh area since 1993. They are expert foreclosure and bankruptcy lawyers. Free consultations are available at all of their locations. Call (412) 824-4011 to schedule one today.