If you can’t pay your taxes in Maryland, you don’t have to sit and wait for a tax audit. You could get in touch with the IRS ahead of time to figure out how you could pay your taxes or reduce the amount that you have to pay. You could even take out a loan to pay off your debts although you’ll still be responsible for paying off the loan afterward.
How can you avoid an IRS tax audit?
You can contact the IRS and ask for a payment plan if you don’t think you are able to pay your taxes all at once. One option is a short-term payment plan that lasts up to 120 days and has no extra fees. If you need more time, you could ask for a long-term payment plan. Your payments can be spread out over several months, but you might have to pay up to $149 a month in user fees.
Under tax law, you could also request an offer in compromise. This allows you to pay less than the full amount that you owe to the IRS. However, you’ll have to meet certain qualifications before you can request an offer in compromise. Since the IRS wants to collect money, the organization typically doesn’t offer this option except in extreme circumstances.
In any case, you might want to talk to a tax litigation attorney before you try to negotiate with the IRS. Your attorney may recommend different options and represent you if you get into legal trouble with the government.
What if you’re not sure how to negotiate with the IRS?
Negotiating with the IRS can be challenging, especially if you have back taxes or late payments on your record. An attorney may be able to help you negotiate for a payment plan, an offer in compromise or another option that works for your situation.
If you’re having trouble paying your bills altogether, an attorney may talk to you about possible options. This might include filing for bankruptcy so that you can get on top of your bills. Bankruptcy doesn’t wipe out back taxes, but it could help you get the rest of your finances in order so that you can make payments to the IRS.