Reduce Back Taxes Or Go To Jail, Your Choice
Back in 1862, Congress enacted the first income tax law in order to support the Civil War efforts. Then in 1913 the 16th Amendment made taxes permanent.
Now, you only have two choices
- Pay your taxes in full and on time
- Be in debt to the US Government and incur more penalties for failure to file and failure to pay
Of course, it is still always best to file your taxes, even if you cannot pay the money. At least you will not get a failure to file penalty on top of everything else.
Now if it turns out you owe back taxes to IRS, you can reduce back taxes if you are eligible for the Offer In Compromise program, which allows qualified people to pay a negotiated settled amount that is less than what is owed.
IRS tax debt is one of the debts you want to avoid at all costs. Too many back taxes penalties and charges and you could find yourself spending some time in the Big House, or at the very least having your wages garnished.
That is why if you owe Federal back taxes you should do whatever you can to pay the debt or get help with debt relief.
Some ideas to help you earn money to reduce back taxes
- Get a second job for a little while
- Take on freelance work
- Sell some of your stuff
- Borrow it from someone
- Provide a service, like babysitting, housecleaning or dog walking
- Make crafts to sell on Etsy or another handmade craft site