Can't afford to pay your taxes? Don't panic
Financial advice from Dominick Tavella
- Duration 4:13
- Date Apr 15, 2012
Financial advice from Dominick Tavella
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We certainly are learning that mother nature can be on forgiving and so can the IRS it is April 15 -- you don't have to panic this year it's not tax day today you get two extra days.
But what happens if you can't pay your taxes well in today's take charge consumer protection segment.
Want to talk about some of the ways you can find the cash you need to pay that bill because they will find -- Dominique to valley is a financial advisors president -- diversified financial consultants.
He knows a lot about this topic and this is great picture here today was a lot of people now are finding out that they.
And they are there underwater in their homes they may be unemployed.
Some good news let's start with those who are either in military service or unemployed what breaks today.
We got it a nice -- flashy it's called fresh start so if you.
Have been unemployed and many of the of people -- country have been unemployed spent at least thirty days -- last fifteen months unemployed if you're active military service.
Few self employed your income one dramatically down -- at least 25%.
Or and fortune which you pay with these natural disasters -- -- suffered -- what -- natural disasters form 1127.
This allows you avoid paying the penalties for six months he sought to pay the taxes get to pay interest on the money.
But you avoid the penalties a huge gift it is and that -- were talking about federal state has different.
They have their own rules a delicate disfiguring and you want folks to not forget to file their state return really one of the most important things you people look at that number any panic and go oh my god what am I gonna do.
I held the return the penalty for not filing -- 5% a month Jamie 25% of the liability so file that return and send it whatever dollars you have send the main.
Even if if the file the extension sentiment -- -- I promised let's deliver where do you find that -- cat at home equity lines have.
Some want dried up you were tell me but also a lot of people owe more on their homes and they can bar they don't have equity.
Should you borrow from a retirement account we'll start -- -- home equity loans if they're available that's a great source.
The interest may be tax deductible so it's available to break.
401K plans I don't really big fan of this but you know what a lot of them have long privileges very low interest rates -- -- five year pay -- period.
You come bar from the 401K.
Pay your iris liability pay it back over five years credit cards Paris now takes credit card and a great.
That they will charge -- transaction fee could be as much as 2% -- can pay on credit card.
But be careful be interest rate that you are paying on that credit card try to get a low interest try to go lowest I don't know every -- Has -- steered the IRS the interest rate there are penalties but interest -- on these liabilities only 3% a year -- so what about other sources where else can we find cash to pay.
The IRS well well now one of my favorites again but if you if you needed and you know you're gonna pay this back the IRS gives -- a sixty day window to take money out of an IRA account has -- -- -- -- -- put the money back within sixty days.
You can -- that money out take it pay your liability put the money back no taxes no 10% penalty for early withdrawal so that's interstate not a source.
Lot of people have done this already but scrapping old gold you have stuff laying around gold is -- very high price right now.
-- it paid a liability.
And if you want -- you say call the IRS paid ten dollars a month even if you get on a payment plan you also don't get charged a penalty -- point this is form 9465.
It's an installment plan and you go to the IRS -- you know what I'd like to pay my taxes I did file the return right did follow a ballot extension.
I want to pay my taxes.
You can cut the penalties weighed down get yourself on a payment.
The interest rates again is only 3%.
The not payment penalty gets down to a quarter of 1% I'll -- -- Take it it's a gift pay taxes no stress our -- pack.
We like the stress free tax payment -- thank you some good ideas today it'll be on our website too great to see you have a great day and go to the -- news HQ page and there you'll see -- take charge link click on it'll be posted later foxnews.com.
Good luck everybody.
Pay so you can stay up it.