Even If You Can Pay Your Taxes, You Need To File Them

Freeman Tax Law
(855)935-5945
Even If You Can’t Pay
Your Taxes, You Need
To File Them

Improve Your Future Financial State
Freeman Tax Law  (855) 935-5945  info@freemantaxlaw.com  www.freemantaxlaw.com
Times are tight so you think you'll skip
worrying about taxes this year - WRONG.
No matter your current financial situation
you will improve your future financial state
by filing your taxes. Even when payment
may not seem like an option, you will lower
your penalties by filing your return on time
with the IRS.

Penalties Of Not Paying Your Taxes
Penalties
Failure to file - this penalties accrues at the rate of 5% per
month, up to a maximum of 25% of the amount of tax your
return would show you owe.
Failure to pay - accrues only a 1/2% per month, up to a
maximum of 25% of the amount actually shown due on the
return.
When both penalties apply the combined penalty remains at
5% for the first five months and thereafter can continue to
grow at 1/2% per month for 45 more months, with a potential
for a 47.5% penalty over time.
Interest - In addition to the above penalties you will be
charged interest for late payment. An additional penalty is also
added for each year missed, typically 3% above the fluctuating
federal short term interest rate for the given time period.

Undue Hardship Extensions
To qualify for such an extension you need to
show that you do not have enough cash and
assets convertible into cash in excess of current
working capital to meet your tax obligations.
You must also prove that you are unable to
borrow the amount needed except on terms
that would inflict serious loss and hardship. If
you qualify you will be given an extra six
months to pay your taxes.

Borrow Money
Loans from family and friends are the
first method to explore since interest
rates will likely be low. Interest on loans
to pay taxes is not tax deductible, so you
may want to explore a home equity loan.
The loan interest payments will be tax
deductible and will likely carry an interest
rate comparable or lower than other
alternatives.

Installment Payments
Another alternative is to agree to pay the
IRS in installments. With low fees for
individuals with low income, this is a
viable alternative and can be entered into
after a hardship extension. The IRS sets
the terms and if you miss a payment they
can break the contract.

International
Locations:
Basel, Switzerland
Bern, Switzerland
Geneva, Switzerland
Zurich, Swizterland
Atlanta, Georgia
Austin, Texas
Birmingham, Michigan
Boston, Massachusetts
Charlotte, North Carolina
Chicago, Illinois
Cleveland, Ohio
Dallas, Texas
Denver, Colorado
Greenwich, Connecticut
Houston, Texas
Irvine, California
Las Vegas, Nevada
Los Angeles, California
Miami, Florida
New York, New York
Palo Alto, California
Phoenix, Arizona
Pleasanton, California
San Antonio, Texas
San Diego, California
San Francisco, California
San Jose, California
Short Hills, New Jersey
Tampa, Florida
Washington DC
Our Locations

Freeman Tax Law
About Freeman Tax Law
Freeman Tax Law is a boutique tax law firm with national
exposure equipped to handle all domestic and international tax
law matters. At Freeman Tax Law, the attorneys and
professional staff have vast experience with foreign tax
compliance, international tax planning, and resolving tax
controversies involving offshore banking matters. Freeman Tax
Law helps taxpayers and foreign entities become in compliance
with laws such as Foreign Account Tax Compliance Act
(FATCA) and Offshore Voluntary Disclosure Program (OVDP).
In addition to handling complex tax controversies, the Freeman
Tax Law team has extensive expertise in assisting clients with
wealth management and estate planning.

Even If You Can Pay Your Taxes, You Need To File Them

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Even If You Can Pay Your Taxes, You Need To File Them