Taxes are coming due, and many New York property owners are finding that it is getting harder than ever to access their own money.
What happens if you don’t pay your taxes on time? What can you do to find the money and make ends meet?
The Taxman Is Knocking
All kinds of taxes are coming up.
It is federal income tax filing season. If you are unfortunate enough to live in a state with state income taxes those are coming due as well. Then there are your property taxes.
All of which seem to be higher than ever.
Trouble Accessing Money
More financial institutions and banks appear to be having cash problems.
Goldman Sachs started the year off by announcing it will lay off close to 10% of its workforce. Credit Suisse and Deutsche Bank sold off properties to recapitalize to meet their cash needs last year.
We’ve all seen the news of crypto exchange FTX in the news. Blackrock, the world’s largest asset manager, which is 20x bigger than FTX, also recently blocked clients’ requests to withdraw their funds.
So, even if you think you have a good nest egg, it may not be available if you need extra cash to cover your taxes.
What Happens If You Don’t Pay Your Taxes?
When you don’t pay your income taxes the IRS can garnish your wages and access your bank account. They can also file liens against your properties, and force the sale of them.
If you don’t pay your property taxes on time, then a lien will be put on your property. You will face ongoing interest and financial penalties, until it is sold off at auction.
What To Do
Here are three things you can do if you are struggling to keep up with your taxes, and are finding it challenging to access your funds.
1. Hardship Withdrawals From Retirement Accounts
You can avoid the financial penalties of tapping into your IRA or 401k if you qualify for a hardship withdrawal.
2. Payment Plans
Various tax collection agencies may accept payment plans. Be wary, even if they promise not to continue to pursue you for collections, and place liens and garnishments, they have in the past.
3. Challenge Your Property Tax Bill
Chances are that you might not need as much money as you think. Property tax assessments and bills are commonly over-inflated and wrong. Property Tax Adjusters, Ltd. can help you appeal and reduce your bill.