to detail the options Americans have at their disposal if they can't afford to pay their taxes all at once, as well as the penalties associated with failing to pay or file in certain timeframes.The deadline for this year's tax season is about three weeks away. And with inflation still on the sticky side, some may be struggling to pay. So what is your next best option here? Let's bring in"Yahoo Finance's" Moorhead joining me here on set to break it down for us.
Certainly. So let's talk about those penalties just a little bit more. Molly, what penalties people can face potentially, if they don't pay their taxes on time, and how they can go about remediating that as well?So the failure to pay penalty is just 0.5% per month of what you owe. It's a small amount. You don't want to be accruing more on this unpaid bill. But if you can't pay, then you have options.
If you really just want the IRS off your back, you can pay your taxes with your credit card, take out a personal loan. And then you're in good with the government. But you just deal with your lender to pay off what you owe.Certainly. And so how does the IRS help taxpayers who may have fallen on a hard time and have other financial issues, then?Well, they're not going to leave you alone. So, again, file your return. File it on time.