NEW YORK (MainStreet) — You've put off going to the accountant, because you know you’re going to owe the IRS. What's more, you're going to owe the IRS more than you ever thought was possible. Maybe it's $5,000. Maybe it's $10,000. Maybe it's $20,000. What if we told you not to worry all that much about it? It's not bad advice. In fact, it's good advice if you want to sleep through the night and keep your financial house in order.
Owing the IRS Isn’t a Big Deal If...
“It's not a big deal as long as you pay them,” says Eric Green, an attorney with Green and Sklarz in New York. That's the caveat to everything that you’re going to read here: you need to pay the IRS, or the organization is going to come after you. As long as you work with the the IRS, however, you’ll find that it's one of the best creditors you can have.
"How many creditors will deem you uncollectible?" he asks. "How many will compromise with you?" he asks.
Adam Libman of Libman Tax Strategy, a California-based tax preparer, agrees.
"Interest rates with the IRS are always related to the prime rate," Libman said. "They generally charge a much lower interest rate than credit card companies."
In fact, depending on what kind of a rate you have on your student loans, owing money to the IRS might be a better deal even than those.