It’s no secret that the federal income tax filing deadline (April 15) can be a very stressful day for those who have not filed their returns. Some see it as a sign of the apocalypse (a financial one, that is) while others may prefer a root canal if offered in exchange for doing their taxes. Regardless, the stress over potentially owing money, while not having it, can be overwhelming. According to the Gallup Healthways Wellbeing Index, the tax filing deadline day is the second most stressful day of the year; second only to a day with deadly tornadoes.
But if you have the unfortunate reality of not being able to pay a tax bill right now, you should not stress out. After all, there are options to pursue, and this post will highlight a few of them.
Seek an extension – Not being able to afford your tax bill right away is not the end of the world. Countless people are in this same situation. This is why an extension is a good option. An extra few months to pay your tax bill could be just the thing to make things right.
Set up a payment schedule – You may also find that setting up a payment schedule may help in alleviating the debt in a manner that can fit your budget. As long as your remain current on your plan, the government should not have an issue.
Agree to an Offer in Compromise –You and the government could reach an agreement to where you pay less than the actual tax you owe. This is especially helpful if there is a dispute over the amount actually owed.