Should You File a Tax Return If You Owe the IRS Money and Can't Afford to Pay

Attorney Mary PoolYES, it is extremely important that you file a tax return on time to avoid having penalties assessed against you.  If you cannot afford to pay the IRS in one lump sum, pay as much as you can with the return.  By filing your tax return on time you avoid having a late filing penalty fee assessed by the IRS.  In addition, you will be able to reduce the amount of interest assessed when you pay as much as you can afford when filing your tax return.

If you cannot afford to pay the full amount due, it is best to try to setup a payment agreement with the IRS by completing IRS Form 9465-FS and sending it to the IRS with your tax return.  This will let the IRS know that you are interested in paying your remaining tax liabilities through installments payments.  However, if you are unable to afford to pay the IRS via installment payments, contact one of our Bond & Botes offices today to setup a FREE consultation discuss all of your options.

Filing a chapter 13 would allow you to pay the liability over a five year period and filing chapter 7 may be able to discharge older tax debts if certain criteria are met.  For example, if you have assessed tax liabilities for multiple years and have filed your tax returns on time, the bankruptcy code may allow for some of those tax liabilities to be discharged.   Therefore, it is extremely important to timely file your tax returns.

To learn more about what impact a bankruptcy filing could have on your back taxes, click here.  If you wish to discuss your tax liabilities further, contact one of our local Bond & Botes offices today, to setup your free consultation with an experienced attorney.

Related Articles
Use Your Tax Refund to Eliminate Debt
Will I be able to keep my tax refund each year if I file a Chapter 13 bankruptcy?

 

 

Share This Page

Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

Alabama Offices

Birmingham

2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


Shelby County Location
15 Southlake Lane, Ste 140
Birmingham, AL 35244
Phone: (205) 802-2200


Florence Location
121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010


Huntsville Location
225 Pratt Avenue NE
Huntsville, AL 35801
Phone: (256) 539-9899


Montgomery Location
311 Catoma Street
Montgomery, AL 36104
Phone: (334) 264-3363


Decatur Location
605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


Haleyville Location
914 19th St.
Haleyville, AL 35565
Phone: (205) 486-3580


Gadsden Location
430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


Opelika Location
216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


Anniston Location
1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559


Cullman Location
200 Second Avenue SW
Cullman, AL 35055
Phone: (256) 739-9866


Mississippi Offices

Jackson Location
5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


Hattiesburg Location
607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


Vicksburg Location
1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

© 2024 by Bond & Botes Law Offices. All rights reserved. Disclaimer | Privacy Policy