Tax Preparation Advice: What if You Don’t Have the Funds to Pay Your Taxes?

The IRS is one of the most feared government agencies in the United States. Maybe it’s because their auditors look like secret agents in suits, or maybe it’s because they are responsible for something that affects every one of us-taxes. Yes, we all pay taxes, but what do you do if your tax preparation expert tells you that you owe more taxes than you have the money to pay?
The first piece of advice from your tax preparation expert is to file your taxes even if you can’t pay what you owe. The IRS seems to frown more upon people who simply dodge the mention of taxes than people who genuinely want to pay what they owe. On top of that, you have to consider the fines that come with not paying taxes. Your tax preparation expert will have to include a tax for not being able to pay the amount owed, but the fine for not filing at all is ten times more expensive. To avoid putting yourself in a bigger hole, your tax preparation expert encourages you to file your taxes on time.
As soon as you realized that you can’t pay the taxes you owe, communicate that information to the IRS. You will not be put behind bars. In fact, the IRS is more likely to work with you if you are honest upfront. It is very important that you hire a reputable tax preparation specialist as you work to pay off back taxes. Your tax preparation expert can help you work through fines and interest charges so that you are paying the least amount possible.
If all goes well, your tax preparation expert can help you work with the IRS to establish a payment plan for you to pay off your taxes. If you stick to your payments, you will find that your tax debt can become a thing of the past.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.