I Can't Pay My Taxes - What Should I Do

Image via WikipediaIf this year’s tax filing deadline will be a “pay” day for you and you cannot pay the full amount that you owe, you should still file your return by the due date and pay as much as you can. The IRS may allow you to pay any remaining balance over time in monthly installments through an Installment Agreement or possibly even settle for less than the full amount owed through its Offer in Compromise program.

If you find that you cannot pay the full amount by the filing deadline, you should file your return and pay as much as you can by the due date. To see if you qualify for an installment payment plan, attach a Form 9465, “Installment Agreement Request,” to the front of your tax return. The IRS has streamlined the approval process if the amount owed is not more than $25,000 and can be paid off within a five-year period. Be sure to show the amount of your proposed monthly payment and the date you wish to make your payment each month.

The IRS charges a $43 fee for setting up an installment agreement and you will also be required to pay interest plus a late payment penalty on the unpaid balance. This penalty, usually 0.5 percent of the balance due per month, drops to a 0.25 percent rate when the IRS approves the installment agreement if your return was filed on time and you did not receive a levy notice from the IRS.

Besides possibly qualifying for the reduced late payment penalty, you have another reason for filing your return by the due date — you avoid the late filing penalty, 5 percent per month of the balance due. Paying as much as you can when you file your return will reduce interest and penalty charges.

If you find that you cannot possibly come up with the money to pay your taxes, even through an installment plan, you may apply for an “offer in compromise” to settle your tax debt for less than the full amount owed. The IRS will review your financial situation and future income potential to determine whether your offer is appropriate. Send Form 656, “Offer in Compromise,” and Form 433A, “Collection Information Statement,” to the IRS to determine your eligibility.

The IRS Web site at www.irs.gov has interactive sections to help you determine your eligibility for an installment plan or an offer in compromise. You can also download all the necessary forms from that site. The forms are also available by calling toll free 1-800-TAX-FORM (1-800-829-3676).

Lower Your Home Insurance Costs

Image via WikipediaIn my state, we are bracing ourselves for the next round of home insurance premium increases. It seems that even though we haven't been hit by any major weather events over the last several years, the insurance companies fund to cover such things is highly underfunded. 


Price increases for home insurance are not the kind of expenses you can cut back on, they have to be paid.

Finding ways to reduce or slow the increase of your home insurance bills are possible. It will take some effort, but it is possible to save yourself some money.

Raise Your Deductible.

A deductible is the amount of money you are going to pay toward the loss before the insurance company begins to pay a claim. Presently, most insurance companies recommend a deductible of at least $1000. Why not increase the deductible to $1500 or $2000. See how much you will be saving and with the two options. If it will save you a substantial amount, why not change it. Try it for a year, if your fearful it's to high, change it back. The insurance company will gladly take your money.

Improve Your Homes Resistance to Damage.

Insurance companies are very helpful in offering discounts for a smoke and fire alarm. Ask for a list of these discounts. A burglar alarm with central station monitoring will reduce your insurance costs. Check to see if your insurance company will give you a discount for new dead bolts and other security monitoring.

If you live in areas with major weather events and natural disasters, you may be able to save on premiums by adding storm shutters, strengthening your roof or replacing it completely. Finding ways to make your home more modern and up to the newer building codes for your heating, plumbing and electrical systems to reduce the risk of fire or water damage will reduce insurance costs.

Shop Around.

Always remember you are not tied to one insurance company. Seek out several home insurance companies for a quote. Check consumers reports, independent insurance agents, and online insurance quote websites. Be sure to weigh the best price with the quality of the company. Go online and search for complaints against your insurance company. Make sure your insurance company is rated well by the state and has the financial capacity to be able to pay when the time comes.

Combine Home and Auto Policies With The Same Insurer.

Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

Make Sure Your Credit Report is Good.

It may seem to not be fair to link the amount of your home insurance premium with your credit score but it is a regular practice of insurance companies. When you apply for credit, a low credit score is punished by paying a higher rate on borrowing money. So it is with insurance companies, you will be judged a higher risk and charged more for your premium.

Finally, review the cost of rebuilding your home and make sure you are paying the right amount of insurance for it to be replaced. A newer home will sometimes have a lower premium because the age of the house makes a difference. The quality of you fire department is taken into consideration. If you live in a urban or rural community, it will affect the price of your premium.

There are many ways to save money on your home insurance costs, it just takes working closely with your insurance agent to make sure every discount is taken.

In Rough Times, Cash For Structured Settlements Can Be A Life Saver

Image via WikipediaWe all have times in our lives where we experience hard economic problems. It can be loss of a job, your home in foreclosure, medical bills or any need for cash. You may have already borrowed from your credit cards, family and friends. You may have no other place to turn. If you are receiving structured settlement payments and they just aren't enough to cover your expenses, there still is a way out.

What Is a Structured Settlement?

A structured settlement is an agreement where you are compensated, in monthly payments, for a release of your claim of liability. It usually is the result of a personal injury lawsuit.

These payments are initiated through the purchase of an annuity from a life insurance company. The insurance company pays the settlement over period of installments. This can be monthly, yearly or other time frame.

How Can Selling Your Structured Settlement Help?

Selling your structured settlement payments can help you get the cash you need when your financial emergency occurs. A company will give you a lump sum for your settlement payments. The company will continue to receive your distribution and you will walk away with your money. No more waiting for that monthly check to come in. You can have the cash you need to fulfill your financial need. Even if there is no problem, you can use the cash to buy a home or start a business.

Issues To Watch Out For When Contacting A Company.

When you are ready to make the move of selling your structured settlement, the first thing you should do is contact a financial adviser. Many states have regulations and rules governing the sale of structured settlements. You may even have to go before a judge who will rule on your sale. Many companies are in the business of structured settlement purchasing. Many do a fine job for their clients, yet their are some that do not. There are companies like stone street capitol that could of done a better job.

Be sure to thoroughly check out the reputation of the company you are using. Even call several companies to get a feel of their professionalism and interest. Seeking the offers of a few companies, will help you to be sure your getting the maximum amount for your structured settlement. 

Prosper.com Now Offering IRAs and Other Tax Deferred Accounts

Prosper.com is the website that believes in the power of peer-to-peer lending, cutting out the middleman. Prosper.com puts together creditworthy borrowers who want to borrow money with lenders seeking consistent and predictable high-yield returns. At Prosper.com you can expect seasoned returns of up to 10.46%. Borrowers can apply for unsecured loans at rates starting at 6.59%.

With 1,250,000 members and over $311,000,000 in personal loans funded, Prosper.com has attracted much attention. The loan process and forms are all done online. Easy and quick for the borrower. The lenders see a high rate of return and the advantage of diversifying over several loans. There is relatively low risk associated with a peer to peer loan because lenders invest a small amount (as low as $25) in many different loans, there’s always some risk but you get to spread it around many loans.

Now, to make investing even sweeter at Prosper.com they are offering Traditional, Roth, SEP and 401(k) rollovers in a Prosper IRA. The minimum investment requirement is $5,000. The federal deadline to fund a Prosper.com IRA is Tuesday, April 17, 2012.

Benefits of a Prosper IRA are:

• Tax advantages: returns grow faster tax-deferred with the Traditional IRA, and tax-free with a Roth IRA.
• No fees: all fees for accounts with balances of at least $10,000 are paid by Prosper.com.
• Broad diversification: a portfolio of consumer loans helps reduce an investor's portfolio volatility.
• Easy reinvestment: Prosper.com’s Automated Quick Invest tool reinvests earnings so that returns compound over time.
• Personalized service: To ensure the best service, Prosper.com has partnered with Sterling Trust3, the self-directed IRA custodian with over $10 billion under custodial and retirement administration.

For more information, Prosper.com is hosting a free webinar on Thursday, March 15 at 7 p.m. ET / 4 p.m. PT. Prosper.com’s Chief Investment Officer, Joseph Toms, and Mike Kurka, Institutional Sales Executive at Sterling Trust will lead the conversation: “Boost Your Retirement Savings: The Advantages of a Self-Directed IRA for Your Peer-to-Peer Lending Investment.” Register here.

Personal loans at rates as low as 6.59% APR. No hidden fees. No pre-payment penalties