What happens if you owe the IRS back taxes?

If you will owe taxes to the IRS and can’t pay the balance, this is the most important thing: You should still file your tax return. If your tax return won’t be ready before Tax Day, you should at least file for an automatic six-month extension. It’s important to complete one of these steps to avoid the failure to file penalty. The penalty is equal to 5% of the unpaid balance, per month or part of a month, up to a maximum of 25% of unpaid tax. (Note: The 5% per month penalty increases to 15% per month if the failure to file is due to fraud. For returns filed more than 60 days after the due date or extended due date, the minimum penalty is equal to the lesser of $205 or 100% of the unpaid tax.) If you can’t afford to pay all the taxes you owe, you should know your options. It’s important to come up with a plan. Otherwise, you may be hit with significant penalties and interest accruals over time. Here are some of the most common options for people who owe and can’t pay. So before the agency garnishes your wages and freezes you bank accounts – here’s what to do if you owe money and can’t pay. Ready!!!!! JUST CALL US 561-859-0411 We know all the latest tax laws and how they can impact you. We don't just process your returns; will take the time to ask you all the right questions to be sure that you get every credit and deduction you deserve. We also take time to evaluate and analyze your tax information, to identify the correct approach reporting your income while minimizing your current tax burden.