This tax tip helps taxpayers who find themselves with this crisis. This tip discusses circumstances that can lead to this situation. One of the most important pieces of advice emphasized here is the importance of filing on time. Options that are available to taxpayers unable to pay are discussed.
Special attention is paid to the advisability of placing tax debt on a credit card.
Incurring a larger than expected tax bill is easier than you might suspect. Sometimes taxpayers fail to increase withholding amounts after they receive a raise. Larger than average gains in the stock market also could mean a higher tax debt than anticipated. The consequences of withholding too little don't come to light until the taxpayer begins filing his taxes. Our federal tax system is progressive.