As Orlando tax problem advisors we know that filing a tax form is not easy, but all your efforts and times are rewarded well when you get your tax refund. However in some unfortunate circumstances, you may be surprised to find out that you actually owe more taxes and so are now in debt. This is quite a common tax problem in Orlando, but fret not, because you can deal with it.

Debt is considered a huge tax problem in Orlando because it is an unwanted expense. If the amount is small, you would not be faced with much difficulty, but if it is otherwise, managing it can be tricky.  As such, you may have to face difficulties in managing it.  Act on your advice, and the process would be simplified. Here is how you can quickly pay off your debt should you be faced with an unwanted tax bill. You can either use one of these or a combination of two or three options.

Credit Card

If there is enough credit available on your credit card, you can pay off your tax bill with it. Considering the interest rates, this would also increase your debts, but at least you would not have to deal with the IRS. The option is not really that great because other than the interest rates, you have to pay extra charges that can be nearly up to 4% of the tax bill.

If you have a number of credit cards on you, the situation is made somewhat better. Needless to mention, pay your tax debt with the card that offers the lowest rates and fees.

Bank Loans

Another tax problem Orlando tip is that there are many banks and financial agencies that offer unsecured credit lines and personal loans to help you pay off your debt. There are interest rates involved with this as well that are range between 6% and 21%.  Compared to credit cards, the rates are almost the same, but loans are still a better option because they have a lesser impact on your credit score. However, approval is not easy, particularly if your credit ratings are not that impressive.

Saving Accounts

An unexpected tax debt can be regarded as an emergency situation, if it is too large. If you want, you can use the funds in your emergency account as well. While you may not find this as an emergency, you should know that IRS can be very harsh in terms of interests and penalties, which you cannot avoid if you fail to pay the tax debt. As such, use your emergency funds, and if you are not so sure, you could use only a small percentage of them. The remaining debt amount can be taken from other financial sources.

Retirement Account

Another way to get rid or your tax problem Orlando is that there are many laws that allow you to take out money from your retirement account even if you have not yet reached the age. In some cases, you may have to pay a penalty or a fee, but there are polices that can help you in waiving them off.

If you need more information about our, Orlando accounting and tax services, please contact us at 407-502-2400.  Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years.  Our Orlando accounting and tax firm has its main offices in Kissimmee, FL.  Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL.  Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.

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