When you owe money on your taxes, you need to make every effort to pay it back by the tax deadline. If you can’t pay what you owe, there are methods available for tax debt resolution.
Watch the video to learn more about What Happens When You Owe, then test your tax knowledge at the end of the lesson.
If you file a tax extension using Form 4868, fees and interest on the amount owed are forgiven.
A. True
B. False
What is an option for tax debt resolution that involves settling tax debt for less than you owe?
A. Innocent Spouse status
B. Currently Not Collectible status
C. Offer In Compromise
D. IRS Installment Agreement
How can you help protect your personal tax information from fraud and scams?
A. Lock up your Social Security card
B. Shred sensitive documents
C. Check for unfamiliar activity
D. All of the above