Tuesday, April 15, 2008

It's Important to Pay Taxes In Full

As of April 15 deadline approaches, we begin to receive cause from tax payers who do not have the ready cash needed to pay their tax liability. There are significant penalties for failing to pay your tax liability by the April 15 due date. Whether paying with a timely filed tax return,

or filing and paying late after receiving a bill from the IRS ( and we have determined the bill is correct), taxpayers are encouraged to pay the taxes they owe in full. If taxes are not paid, and no effort is made, the IRS can ask a taxpayer to take action to pay the taxes, such as selling or mortgaging any assetts owned or getting a loan. If the taxpayer continues to make no effort to pay the bill, or other payment arrangements have not been made, the IRS could take more drastic measures, such as levying bank accounts, wages, or other income, or taking other assets. A Notice of Federal Tax Lien could be filed that may have a detrimental effect on a taxpayer's credit standing. The penalties and interest charged by the IRS are substantially than most commercial lending rates, so it is better to borrow the funds elsewhere and pay the IRS in full period. Where taxpayers cannot raise part or all of the funds to pay their taxes by conventional means, the IRS offers credit card payment and installment agreements.

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