Tax day is a day that people either highly anticipate or absolutely dread. This major difference usually depends on whether the person is getting a refund, or if he or she owes money. Owing money to the IRS is never a good thing, and if you are in this position, you might want to take any step you can to get this debt paid off–like getting a cash advance loan. If you can pay off the tax debt on time, you can avoid these three things:
Penalties and interest
The first issue you will have with the IRS is that they will charge you penalties and interest on the unpaid tax debt you owe. The penalty for tax debt is generally 5% of the amount owed, and the interest is usually around 4% to 6% of the total amount. With both of these charges, you will end up owing more than just the tax debt you owed, and it could take a long time to repay this debt.
In addition, the IRS will not forget about this debt. They will send letters, and you will need to come up with a payment arrangement for it. Tax debt is not the type of debt you can have discharged through bankruptcy, and the IRS is not typically willing to forgive the debt you owe.
Tax liens on your property
To make matters worse, the IRS may place a tax lien on the property you own if you owe back taxes. It does not matter how much you owe to the government; they have the right to use liens to get the money they are owed.
If a tax lien is placed on your property, you will have to pay the lien if you sell the property. There is no way to avoid this if a lien is placed on something you own, but you can avoid this problem by paying the tax debt in full when it is due.
Another issue you may end up with is getting a notice that your wages will be garnished by the IRS. Imagine how embarrassing this would be at your job, and think about how this would affect your weekly take home pay.
You could avoid all of these things by taking out a cash advance loan in the amount of the tax debt. By doing this, you will not have to worry about wage garnishments, tax liens, or any of the other methods the IRS uses to collect back taxes. Contact a company like Payday Advance to get started on a cash advance loan.Share