Three Tips To Help You Pay Off Your Debt To The IRS
Posted on: 23 April 2018
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If there is one entity to whom you do not want to be in debt, it is the IRS. You cannot discharge tax debt in bankruptcy, and you can be fined -- or put in jail -- for not paying your taxes. Thankfully, the IRS is willing to work with people on repaying their tax debts, and as long as you have some sort of repayment agreement with them, you should not find yourself in danger of being charged with a crime. However, you will still need to work hard to make sure you make the monthly or otherwise agreed-upon payments on your tax debt. Here are three tips to help you pay.
Get a second job.
Working two jobs may seem like a huge burden, but you should only have to do this until your tax debt is settled. Put whatever you earn at your second debt towards your tax debt, even if that means over-paying in excess of what you technically owe each month. The sooner you pay off the debt, the less interest you will end up paying in total. Good second jobs include delivering pizzas, driving for a company like Uber, and stocking shelves overnight.
Sell some items you don't need.
Sort through your things, and make a pile of items you do not need. Then, embark on a mission to sell those items. You can have a garage sale, list the items online, or even take them to a local consignment store. As soon as you get money from selling an item, deposit it in an account that you dedicate just for repaying your tax debt.
Cancel a few services.
Take a look at the list of services you are paying for each month, and consider whether you really need them all. For instance, if you never go to the gym, you do not need to pay for a gym membership. If you only watch Netflix, you don't need cable. Cancel the services you don't need or can do without, and put that amount of money towards your tax debt each month.
Follow the tips above, and you will have your tax debt paid off before you know it. If you owe more than a few thousand dollars, you may want to meet with a tax professional, such as from DeShark Consulting, LLC, regarding your debt. They can help you work out a more feasible deal with the IRS so you can pay back over a longer period of time.