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*Disclaimer: Ghatrehee Law Firm PLLC provides legal representation and legal advice to clients throughout the State of Texas. The information presented throughout this site is strictly for informational purposes and is not intended to be construed as legal advice.  The use of this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.  Additionally, the outcome of an individual case depends on a variety of factors unique to that case. For advice specific to your case or if you have further questions, please contact one of our attorneys at (469) 375-4553.

I CANNOT PAY MY TAXES

Ghatrehee Law Firm PLLC has a very successful record in representing clients before the Internal Revenue Service (IRS) who cannot pay the taxes they owe.

 

What should I do?

 

If you cannot pay the taxes you owe, contact Ghatrehee Law Firm PLLC as soon as you can because there are payment options available to you. Which option might work best for you generally depends on how much you owe and your current financial situation. Each option has different requirements.

 

The most important thing is to take action!

 

Most options for paying off a tax debt work best if you are proactive. Call Ghatrehee Law Firm PLLC immediately. By taking action as soon as possible, you’ll help ease the burden and keep the IRS from trying to collect the debt, such as filing liens against you and levies on your bank accounts.

 

If you need to file a tax return, you should. You’ll still owe the taxes, whether or not you file and you will save money on the failure to file penalty.

 

You should file your return on time, with or without a payment — the IRS can charge penalties for filing late. The IRS also charges daily interest on unpaid tax bills, so the longer you wait, the more interest you will owe. If you are experiencing IRS tax problems due to reasonable circumstances, you may be able to have a tax penalty reduced or abated. 

 

First: Figure out how much you think you can pay

We need to consider your entire financial situation. Make a list of your assets and income, and consider other debts you might owe to figure out how much you can pay toward your tax debt.

Before we can enter you into any kind of payment agreement, be sure you can pay that amount every month, on time.

If you have another way of getting money, like borrowing from a bank or an individual, it’s worth considering. The interest rate and fees charged by a bank or credit card company are usually lower than the combination of interest and penalties imposed by the IRS.                                                 

Second: Choose the payment option that fits your situation

If you can pay the full amount now

You can pay with an electronic funds transfer or with a credit or debit card, or with a check by mailing it to the address listed on your bill or bringing it to your local IRS office.

If you can’t pay the full amount now, but can pay it within 120 days

If you can’t pay in full immediately, the IRS offers additional time (up to 120 days) to pay in full. It’s not a formal payment option, so there’s no application and no fee, but interest and any penalties will continue to accrue until the tax debt is paid in full.

If you need to make monthly payments to pay off the debt

You can ask for an Installment Agreement, which sets up a fixed monthly payment. This is a formal agreement with the IRS, and involves an application process and some fees.

You won’t be able to pay off the full debt

An Offer in Compromise allows you to pay less than the full amount you owe. 

For the IRS to consider an Offer in Compromise, you must submit an application, and must generally pay certain fees and a portion of the debt. You must then file tax returns and make payments on time for five years after the IRS accepts your offer.

If you can’t make any sort of payment now

The IRS understands there may be times when someone can’t pay a tax debt due to their current financial situation. If the IRS agrees that you can’t pay your taxes and also pay your reasonable living expenses, it may place your account in a status called Currently Not Collectible. The IRS will not seek to collect payment from you while your account is in Currently Not Collectible status, but the debt does not go away, and penalties and interest will continue to grow.

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