owing money to the Internal Revenue Service (IRS). This becomes extra hard to deal with if your tax bill is more than the cash you have on hand. Fortunately, you have a few options to pay off your tax debt, depending on your personal situation. The IRS offers a variety of payment ...
It's also critical to keep open lines of communication with the IRS. If youcan't pay your tax bill, be proactive and let them know why and promptly answer any communication you receive from the IRS. Otherwise, the agency will take the next step to collect the debt, including taking mone...
The IRS usually settles for whatever amount they claim you can reasonably pay. To determine this, they consider yourtotal assets(e.g., house and car), your income, and your monthly expenses. You can estimate how much you may receive as a tax settlement by using FreshBooks to compare these...
What is the safest way to pay off high-interest debt? The safest way to pay off high-interest debt is through the avalanche method, which focuses on the highest interest balances first while making minimum payments on others. Consolidating debt to secure a lower rate can also be effective. ...
Debt relief involves the reorganization of a borrower's debts to make them easier to repay. Debt relief can come in a variety of forms. It also can give creditors a chance to recoup at least a portion of what they are owed.
A common way to settle your credit card debts is to get a loan from the bank, and then pay the bank back in one monthly payment rather than multiple creditors. The same can be done with IRS tax debt using a loan from aprivate lender. This isn’t necessarily the smartest debt solution...
When investing in publicly traded REITs, here are strategies to consider: Do your homework: Examine a REIT's portfolio, management team, debt levels, and dividend history before investing. Think of the long-term: REITs are customarily best suited for long-term strategies because of how they ...
How to Take 401(k) Hardship Withdrawals More Getty Images If you have an "immediate and heavy financial need," the IRS may allow a 401(k) hardship withdrawal. If you're looking for resources to get through a difficult financial situation, you may have considered taking money out of your ...
Otherwise, the IRS might consider the exchange to be a gift, particularly if the borrower is a friend or a family member. And gifts aren't tax deductible. The debt must be worthless The unpaid debt must be 100% worthless before you can deduct it. There must be no chance that the...
The deadline to take your first RMD is generally April 1 of the year after you turn 73 and Dec. 31 in each subsequent year. Because money held in traditional retirement plans has not yet been taxed, the IRS wants its piece of the pie once an account owner begins retirement withdraw...