Article | Transcript | Info Graphic
Scott: Thank you for joining us today. I’m Scott [Tunnell 00:00:02] with DCC Financial Freedom Community. And today, I’m here with Thomas Abblett, a CPA from Boca Raton, Florida. Hi, Tom.
Tom: Hi. How are you doing, Scott?
Scott: I’m doing well. Thank you for joining us today.
Tom: No problem.
Scott: Excellent. Today I want to talk about those people, unfortunately, maybe have a little bit of money due to the IRS. How does that work? Who should the talk to? And what options they have.
Tom: Obviously when you work through your tax return, whether you do it on your own or you do it with a tax professional, when there is a balance due. The first thing you want to do is file that tax return on time. That is very very important. Even if you have a balance owing. At the time that you file the return, you want to pay in as much of or all of the balance if you can.
If for some reason you can’t, things come up in life, you don’t always have that cash available to you. The best thing is to file that return on time. And if you need to, you can request an Installment Agreement with the IRS and pay the balance due over time.
Now, the IRS isn’t quite as forgiving as everybody says, so they will still charge you a penalty and interest on the outstanding balance. So, as you pay it down, the penalty and interest will go down. But they will give you time to pay it off, if need be. Don’t ignore them, though. Worse thing you could possibly do. That will end up resulting in levees, fines, they may take the money out of your bank account directly if you just ignore them. So, do not ignore them. File the return. File for a Request For an Installment Agreement if need be and pay it off over time.
Scott: Okay. Excellent. Great advice. Thank you.
Tom: Thank you.
Scott: That’s our time for today. Thank you for joining us. Once again, I’m Scott [Tunnell 00:01:44] with DCC Financial Freedom Community here with Tom Abblett, CPA for Boca Raton, Florida.
Tom: Thank you.
Scott: Have a great day.
