The Law Office of Lance R. Drury
Ste. Genevieve : 573-883-3056
St. Louis : 314-260-6120
Toll Free : 888-367-6512

Received an IRS tax bill? Don’t ignore it

It is one of the big fears a taxpayer may have, that they will one day receive a big bill from the IRS that they don’t have the money to pay. Some people’s gut reaction to getting bad news might be to ignore it and delay taking any action regarding it, so they don’t have to think about it. Also, some individuals might make the incorrect assumption that if they have a tax bill that they currently are unable to pay in full, they have no real options and thus it really doesn’t matter how they respond to the bill.

However, ignoring a tax bill can have very serious consequences. It could expose a person to growing interest and penalties. Also, it could cause their tax debt issue to grow into a much bigger problem with the Internal Revenue Service that could have significant ramifications for their finances and their future. So, taking prompt action to respond can be very important when a person receives a tax bill that they don’t have the funds to immediately pay off.

There are a range of options such a taxpayer may have for addressing their tax debt, including:

  • Trying to reach an installment agreement with the IRS. Under such an agreement, a person can pay off a tax debt over time.
  • Pursuing an offer in compromise with the IRS. An offer in compromise allows a person to settle a tax debt for less than the full amount.
  • Using credit to pay off the debt.

Every taxpayer facing a big tax debt has their own particular circumstances, and these circumstances influence things like what options for addressing their debt they have and which options which would be consistent with their goals and overall financial well-being. So, an understanding of what options they have available in their situation and what the implications of each of these options would be can be critical pieces of information for a person to be equipped with when taking action in response to a big tax bill. Tax attorneys can provide taxpayers with this information and other key pieces of information, guidance and advice to help inform their decision-making when navigating a tax debt matter.

Source: Red Bluff Daily News, “IRS tips for taxpayers who owe taxes,” May 16, 2017

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

How Can We Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Ste. Genevieve Office
150 Merchant Street
(By Appointment)
Ste. Genevieve, MO 63670

Fax: 573-883-3095
Ste. Genevieve Law Office Map

St. Louis Office
3636 South Geyer Road, Suite 100
(By Appointment)
St. Louis, MO 63127

Phone: 314-260-6120
Fax: 314-238-7201
Map & Directions

Review Us