What to do if you can't pay your taxes
Thu, 04 Apr 2013 13:03:37 GMT —
If you haven't filed your taxes yet, you're officially a procrastinator. At least, that's what staff at Liberty Tax Service in Quincy would say.
The deadline to file your taxes is April 15 ... a week from Monday.
Brad Bareis says more often these days, people are finding out they owe on taxes or owe more than they expected.
Bareis says the state of the economy hasn't helped. People have begun taking more money out of their 401Ks or while others have lost their jobs. That greatly effects how much you get back in your tax refund. But you should never assume you won't get much back. Right now, there's millions of dollars in the vault waiting for your past returns.
"There's around 9 million dollars that the IRS will end up with. They will get that money. That is really your money. So, you need to file your returns to get that refund," Bareis said
So what should you do if you can't pay the full amount? Bareis says you're only in trouble with the IRS if you don't file.
"If you can't pay, you need to go ahead and file, because there's a big penalty involved if you don't file. It could be up to 25 percent of your balanced due. If you owe $100, it could cost you $25 on top of the $100 you already owe, just in penalties. Then there's going to be interest on top of that," Bareis said.
You can file taxes from up to three-years-ago, so tax services can still help file your 2009 taxes and even get some of your money back. Those must be turned in before the April 15 deadline.