We have all heard the horror stories about people who were in some serious trouble with the IRS. And the fact is that we just assume those things are not going to happen to us. But you have to know that most people who end up in some serious trouble with the IRS do not let this happen because they are some type of criminal masterminds. It happens because they mess up on their taxes, either on purpose or by accident. And those are just mistakes, they are not some horrible things that you could not possibly do.
We have to say that we are surprised when so many people think this could never happen to them. But the reality is that it most definitely could. Let us say that you are in a situation where you see your tax bill and it is close to $10,000. You cannot even believe that you have such a high tax bill, and we are with you on that. Sometimes it can just creep up on you and you do not even realize what has happened. But now you have to do something about it.
What are you going to do? That is the question. If you are smart, you are going to try your best to pay your taxes on time. But what if you do not have the money, and you cannot raise it on time? We believe that you should go ahead and pay what you can. You should pay the partial amount if that is all that you can manage. And you can read more about how this would work. We encourage you to read more and see what happens if you take this step. Do not fear that you will end up on some horror story if you do not pay the full amount right away.
Let me be clear. It is NOT ideal if you pay only three quarters of the tax bill that you owe. It is not ideal at all. But it is not the end of the world either. You are having financial problems. You are not doing this on purpose. You have no other choice. And that is why we think that you should make a good faith effort to talk with the IRS. Let us say that a few months have gone since you sent your tax forms and the check.
Now you know that the IRS is aware of what happened. Your case is a low priority since it is not a huge amount and you are just filing personal taxes. But they will get to you eventually. It is better if you are proactive and you say that you are willing to negotiate. You can either say that you want to get your bill lowered so that you can afford the payment. Or you can tell the IRS that you can start some type of installment agreement, where you are paying a monthly amount so that you can eventually pay back all that you owe.