Selling a Structured Settlement to Pay Off Overdue Taxes

Selling a Structured Settlement to Pay Off Overdue TaxesIf you have yet to file your 2011 taxes, they are now overdue and the IRS might be calling. Generally those that are avoiding filing past the deadline are doing so because they owe the IRS money; obviously, this isn’t the best way of dealing with it and legal trouble may result. If you own a structured settlement, one option that you have is to sell the structured settlement for cash in order to pay your bill with the IRS, getting them off of your back and giving you cash to pay the bills in the process.

To the IRS, the IRS Comes First

Regardless of how much you owe them, the Internal Revenue Service has the law and the power of the government on their side, and they will be happy to jail you for tax evasion if the circumstances make your case worth pursuing. The IRS considers any money that you make or assets that you own theirs until your back taxes are paid; this makes selling a structured settlement a helpful tactic as they will likely seize it should they come after you anyway.

Selling to Avoid Borrowing

Some individuals feel compelled to borrow money to pay off their IRS bill, but again this isn’t the greatest idea as it tends to dig the hole deeper than it was before. If you can’t afford the tax bill you probably can’t afford the loan, and with interest added on top you will end up further in debt than you were when you started. If you have a fairly sizeable structured settlement, you can simply sell it off to get enough cash to pay your tax bill without having to worry about incurring additional debt.

Spend the Rest of your Settlement Carefully

One piece of advice that we can share from our experience in the structured settlement buying business is to spend the rest of the cash that you receive from the sale carefully. Many individuals see the large chunk of cash as a windfall, but in truth it is money that you would have received on a regular basis anyway and should be used for bills, debt and investments. Pay your tax bill, and if there is anything left over from your structured settlement invest it or save it for a rainy day.

If you have questions about the structured settlement sales process, or if you would like to find out how much lump-sum cash you can receive for your settlement, get in touch with the team at Rapid Cash Funding today. You can reach us at your convenience at 1-877-63-RAPID – we’re happy to provide you with an honest estimate of what your structured settlement is worth.

This entry was posted in Articles. Bookmark the permalink.