Can't pay your taxes? Better submit your forms ANYWAY!

Here's an article from Yahoo Personal Finance that client sent to me. It's nothing that I haven't already advised people about for years, but there are still plenty of people out there who don't know about this.

Article here:

http://biz.yahoo.com/ap/070227/good_question.html?.v=1&.pf=taxes

What do you do if you prepare your tax returns and see you owe more taxes than you can afford? File an extension? Hide the return and hope the IRS doesn't notice? Both are bad choices, and here's why...

Extensions don't extend the due date for money owed. They only extend the due date for your paperwork. You should always avoid submitting tax returns late. If you owe money you get hit with interest and penalties for not having your money AND paperwork in on time.

So what do you do? Send in your returns with what you can afford. At least that way you get the paperwork in on time and avoid those fees. Then you can set up a payment plan with the authorities. Sure they charge some interest, usually around 5%, but it's better than the alternative.

But be sure of this, there is no way to avoid your taxes. Bankruptcy won't save you, and you can't hide. Plan ahead. Speak to an accountant, and not some place like Jackson Hewitt or H&R Block where they only work during tax season, a real accountant who can offer help and guidance to lessen the burden of a huge tax bill.

More to come. Tax season is only STARTING to get vicious!