Investing Your Money Properly

How A Payday Loan Can Be Used To Pay Off Your Tax Debt

30 April 2015 by Penny Evans

If you recently filed your taxes and have a tax debt to pay, you really should find a way to clear it up as quickly as possible. When you owe the IRS money, they will not let it go. The debt will grow over time, and you will end up owing more later than you do now if you continue to put it off. Taking a payday loan is one of the best ways to pay off an IRS debt, and here are three things you should know about this.

Why It's Important To Pay Off Tax Debt

When April 15 rolls around, you must file and pay any taxes you owe. The consequences of not paying off the taxes you owe by this date include paying interest and penalties on the debt. The first thing the IRS will do is charge you a penalty for failing to pay your taxes. This penalty is normally 5% of the amount owed, and the penalty rate is charged monthly.

The second thing they will do is charge you interest on the debt. This interest is usually around 1% of the amount owed, and it is something that is charged every month until the debt is paid in full.

When you don't pay your taxes, you will owe more later. This is why it is better to find a way to pay the taxes by April 15.

What Could Happen If You Don't Pay It Off

When the IRS receives your tax return without the payment, they will notify you about the debt. They will give you time to pay the amount owed, plus any penalties and interest, and this is your last chance to pay the debt before the additional fees really start to add up. If you still do not pay it, eventually you could face major consequences. The IRS could:

• Garnish your wages – Not only will this reduce your paychecks, but it could also be embarrassing for you.
• Seize your assets – The IRS also has the right to take things you own if you owe money.
• Place liens on your property – If you own your house, the IRS is likely to place a lien on it. This lien will have to be paid if you ever sell the house, but this is not the only problem liens create. When a lien is placed on your property, it also becomes part of your credit report, and it can be hard to get a tax lien removed from a credit report, even if the debt is paid.
• Seize tax returns – If you wait for years to pay the debt and end up expecting a tax refund, you can be certain that the IRS will not issue the refund. They will keep the money to pay the back taxes you owe.

Instead of taking all these risks, you may want to look into getting a payday loan online.

How a Payday Loan Can Help

Payday loans are not hard to get, and you can even get one online. The application process is simple, and the requirements are few. If you can get approved for a payday loan, you will benefit in these ways:

• The IRS will leave you alone – You can use the money to pay the tax debt, and this will get the IRS off your back. Because of this, you will not have to worry about the consequences of failing to pay a tax debt.
• You can set up a payment plan that works for you – If you try to set up a payment plan with the IRS, they will tell you what it will be. With payday loans, you will have some input in the payment amounts and length of the loan.

If you want to clear up a tax debt you have and cannot come up with the money to do so, consider taking a payday loan. You can apply online, and you will have an answer within minutes in most cases. Money 4 You is a local company that offers payday loans. Contact them for more details.

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