COLUMN-What to do when you can't pay your tax bill

April 13, 2015 8:00 AM

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LOS ANGELES, April 13 (Reuters) - Affluent clients facing a big tax bill often have one of two reactions, according to CPA and financial planner Jerry Love: They either try to avoid filing or they want to negotiate a deal.

Neither is a good strategy, he said. Failing to file a tax return triggers much bigger penalties than failing to pay (5 percent versus 0.5 percent per month). And despite television ads to the contrary, settlements aren't easy to win, particularly when you have assets the IRS can go after.

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