Venar Ayar -Cannot Pay Your Taxes

Are you unable to pay your taxes before the fast approaching filing deadline? Are your tax bills amounting to an outrageous sum that you cannot be able to clear in time? Whatever the case, pending bills, more so taxes, can be quite the headache because failure to pay up can damage your credit score, cost you lots of interest and additional penalties and, in some extreme cases, lead to criminal prosecution. This can be such an exacting moment but do not get too worked up. This article will provide you with some tips to help you avoid the repercussions highlighted above. Here is what to do in such a situation:

1.      File Your Tax Returns Anyway

Even if you cannot attain the full amount to clear your due taxes, you should still file your returns by the filing deadline. Failure to file your returns while owing taxes will earn you the ‘failure to file’ penalty which is a hefty 5 percent of your due tax each month from the filing deadline to a maximum of 25 percent after which it accrues a 1 percent monthly interest. In comparison, failing to pay the due tax after filing will only earn you a small penalty of 0.5 percent of the tax due monthly until you complete the payment in full. Filing, therefore, saves you some money with the reduced penalties while you clear the balances.

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