If you already have payday loans, personal loans and other debts to consider, an additional debt can be a terrible thing. The IRS forms and letters which arrive about your debt can be scary. Here’s what to do:
1) If you know you owe back taxes but have not filed yet, visit a qualified accountant, tax preparer or tax attorney today. Bring all your financial information. The sooner you file, the sooner you can start paying off your debt. The sooner you file, the more likely you are to avoid harassing letters and calls.
2) If you already have filed and you owe money, consider taking out a personal loan to pay off your debt. If your debt is small, compare the interest rate on your loan and the rate the IRS charges. It may be cheaper to borrow money than to pay the IRS in increments.
3) If you owe a lot of taxes or cannot afford what you owe, work with the IRS through a tax preparer to develop a repayment plan.