Everybody hates the taxman and probably because they seem to don’t like everybody else either. But with the credit crunch and all, handing out hard-earned dollars to the IRS can be a very painful thing to do. And what if you’re broke, homeless and out of the job? If you’re planning to just run away and hide, better not because the IRS will find you one way or another.
Here are several things you can do if you’re finding a hard time:
- File for an extension. Taxpayers who don’t file returns or extensions can get slapped penalties of 5% to 25% per month on unpaid taxes.
- Don’t have enough money? Pay what you can then file for a short-term extension or an installment agreement. This can work if your balance is below $25,000 or if you’ve been prompt with payments in the past.
- You must still pay taxes owed by April 15 even if you filed for a six-month extension on your return to avoid penalties.
You still have until midnight later to do the right thing. Check out MSNBC for more of Q&As regarding tax filing.
