Consumer Debt Line

Is Uncle Sam breathing down your neck? Conventional wisdom tells you the best way to avoid tax debt is to pay estimated taxes on time and file your personal tax return by April 15th.

The Game:
The IRS is a bureau of the Department of the Treasury and one of the world's most efficient tax administrators. In the United States, the Congress passes tax laws and requires taxpayers to comply.

The Rules: (What you don’t know will hurt you!).
•	Failing to file by April 15th—falling behind or paying late—will incur a penalty and/or interest.
•	Any money owed or penalties should be paid as quickly as possible.

Strategy and Solutions:
•	You can request an extension of up to 120 days, but you need to do so prior to the April 15th filing date.
•	If you find you can’t pay the amount of your tax bill in the agreed extension time frame, make an effort to pay as much as you can
•	You can raise money to pay your taxes by selling off an investment, borrowing against your 401K or life insurance, selling an asset, or (if this is a temporary financial situation) taking a cash advance on a credit card or even a bank loan. A personal loan from family or friends and or adjust your withholding to have more withheld.
•	Keep good records of your income and save receipts to support your deductions.
•	Arrange with the IRS after filing to set up an installment agreement.
•	Set up a calendar to determine when you need to make payments and file your return.

Winning:

Remember to be diligent about your tax bill whenever you make money.

If your tax debts are too much for you to handle, you may want to look into a tax debt program that can save you thousands of dollars in tax payments and eliminates penalties and interest. Click here for a FREE debt analysis to see how much you can save.