What happens if you cant pay your tax?
 

What happens in the US if you get a tax bill that you just cant pay.
Are you allowed time to try and pay it, instalments or what?

Scott

Firing squad, usually.

Best,

Kurt :D

Get a tax attorney ASAP.

Most helpful :D

I have heard it is cheaper to pay your taxes on your credit card and pay the 18% interest than it is to get hit with the IRS late fees, charges, and interest.

You can set up installment payments

They will set up a payment program which will include a penalty and (I think) interest. If you don't cooperate then it escalates to garnished wages, seized property and/or jail.

Punitive penalties and high interest, mostly. Ask me how I know... But they will work with you.

Nice answers guys.

Are they allowed to start seizing your goods straight away or do they need a court order for it?

No, you simply move to New Orleans, vote for Mary Landrieu and become a ward of the state where everyone else pays for you, womb to the tomb...Oh yeah, then you get your $300 check.:rolleyes:

(probably be easier to renounce your US citizenship, go to Mexico, then come BACK across the border).

Call Ronnie Deutch. You will only have to pay twenty bucks.

Douche and friends are the reason OIC's have become such a waste of time these days.

In answer to the question: penalties, interest, hate mail, garnishments, siezures, etc.

The answer is yes, you can get on an installment plan and yes, the interest rate can be favorable. You don't need an attorney. Just go to any competent accountant, CPA or not, and explain the situation. It is not a big deal, it won't cost you a lot to file your returns with a payment plan, it is not a huge problem.

As long as you file your tax return and set up the payment plan you won't get hit with penalties. But you need to file the return even if you don't have the money to pay it. The penalties get big for non-filing.

A few years ago we had some sort of an income spike, I think we sold some stock to put a down payment on a house, and got hit with more taxes than we were planning. The guy who does our taxes, just a regular accountant/bookkeeper type guy, did the returns as usual and signed us up for installment payments on the spot. It's just another form to fill out, you don't need permission or anything. At that time the rate the IRS gave if you filed on time was lower than anything we could have borrowed. I don't know what it is now.

The important thing to understand is that this is nothing to be afraid of and you can pay your taxes over time as long as you file timely and accurately.

Actually, it's simpler than that. File your return, but don't send the money. The IRS will contact you and you can setup a payment plan.

All in all they are pretty easy to work with. They would rather have your check then your house.

Stick it to the man.

;)

I understand this was what Al Capone asked before heading to PMITA prison.

Federal PMITA prison...

You are a very very bad man.

So they finally caught up with you Scott. Silly of you to try one last run to Vegas to get the jewels out. ;)

:D Nah John, this is about my friend, honest.

PAYE for me, every time.