Archive for the ‘Tax Penalties’ Category

12% interest added to your tax bill

Published by Research Editor on July 1st, 2015 - in Tax Penalties, Taxes

Today is the day. The day that can make or break you. Delinquent taxes incur 12% penalty today.

Twelve percent may not sound like a lot, but a $5,000 tax bill becomes $5,600 today. Six hundred more dollars.

If you are unable to pay your taxes, stop incurring his high interest rate by considering, among your options, a property tax loan.

Options for Delinquency

Published by Research Editor on June 3rd, 2013 - in Tax Penalties, Taxes

A new law requires property tax lenders to include this line in their ads:

“YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.”

While the all-caps and bold font may seem a little excessive, it is good to remember that property tax loans are only one option among many for dealing with delinquent property taxes:

Property tax loan

Advantages: your taxes are paid, which means you avoid delinquency status, penalties, lawsuit, and foreclosure. Disadvantage: a property tax loan is a superior loan, meaning the lender can foreclose on your house if you don’t pay back your loan.

Delinquent tax installment plans

Split your payments into four smaller payments. However, this plan is not always available in every county to every citizen.

Split payments

Pay your taxes in two smaller payments instead of one giant payment. Disadvantage: the first half is paid a month early: November 30 Instead of January 1.

Tax deferral

You don’t have to pay your property taxes right now. However, this is limited to senior citizens. Your taxes accrue 8% interest each year–and you do have to pay the taxes eventually.

Borrow money from family or your savings

This could be a great option–or a horrendous option–depending on your situation. Be wise.

Refinance your mortgage to include the taxes

Establish an escrow account

Ignore it

Worst idea ever. You’ll suffer penalties, lawsuit, and foreclosure. Don’t just ignore your delinquent taxes.

 

Whatever option you choose, be wise and make an informed decision.

What is Delinquency?

Published by Research Editor on October 12th, 2012 - in Tax Penalties

Your 2012 property tax bill was sent on or around October 1. You have until February 1, 2013 to pay your bill. If you do not pay by then, your bill is called delinquent.

Delinquency means you are penalized 6% for the first month–with increasing penalties afterwards.

Delinquency also means you are open to further penalties, like late fees, warnings, and, ultimately, foreclosure.

How can I avoid delinquency?

Make sure your taxes are paid before February 1, whether you pay it yourself, use a property tax loan, or split your payments.

How to Pay Property Taxes in Installments

Published by Research Editor on September 10th, 2012 - in Tax Penalties, Taxes

Generally, to avoid interest and penalties, you must pay all your property taxes before February 1. However, if you are either disabled or 65 or older, you can pay your property taxes in four installments, spreading the tax burden over the entire year, with no penalties and interest.

Qualify

You must be:
A) disabled (more at 11.13(m))
OR
B) 65 years old or older
OR
C) the unmarried surviving spouse of a disabled veteran

Payment schedule

To pay taxes in installments, you must:

  • pay 1/4 of taxes before Feb 1, along with a notice that you will pay the rest (3/4) in installments
  • pay second 1/4 before April 1
  • pay third 1/4 before June 1
  • pay your final payment before August 1

Extra payments

You can pay more than the amount due–the extra will be credited to the next installment.

Benefits

NO penalty or interest, if you qualify and pay your installments on time.

Drawbacks

If you miss a deadline, the unpaid amount of taxes is delinquent and you must pay:

  • interest
  • 6% penalty on the unpaid amount

Conclusion

Paying your taxes in installments is an excellent option for those who qualify. If you do not qualify, or if you fall behind in your installment payments, consider a property tax loan to avoid the expensive penalties.

Property Tax Fees and Penalties


 

This video explains in detail the consequences of not paying property taxes for Texans.

For a property tax loan, visit Texas Property Tax Loans

Tax Bills Are Heading Your Way

Published by Research Editor on October 3rd, 2011 - in Tax Penalties, Taxes
Today is the day your tax assessor will mail your 2011 property tax bill, according to the state’s property tax calendar.

Will you be able to pay your bill?

If, like most people, there’s financial insecurity in your home or business, there’s no need to default on your property taxes and suffer the drastic penalties. Consider a property tax loan to cover your complete property tax obligations, including interest and fees.

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Avoid These 3 Dire Consequences of Delinquent Property Taxes

Published by Research Editor on July 25th, 2011 - in Tax Penalties, Taxes

With high property taxes and a wobbly economy, delinquency in property taxes–or a high risk of delinquency–is becoming more common. Ignoring the bills won’t make the problem go away; in fact, it only makes it worse. Serious consequences of not paying property taxes include:

1. Enormous penalties

The more you delay, the more you pay. You can pay up to 38% in fees and penalties if your property taxes are delinquent. For $10,000 in taxes, adding on fees and penalties means you could end up paying $13,800. That’s almost $4,000 of unnecessarily wasted money.

2. Lawsuit

Any time after your taxes are delinquent, the Texas Tax Code states that you can be sued by your taxing unit. If the suit is successful, you get to pay all the court fees on top of your property taxes, fees, and penalties.

3. Foreclosure

Not paying property taxes gives the government power to take away your property in foreclosure. According to the Texas Tax Code, “On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property.”

Is all this doom and gloom necessary? Most definitely not! Getting a property tax loan eliminates these consequences–no more wasted money on fees and penalties, no threat of lawsuit from your tax collector, and no worries about foreclosure from your tax unit–and allows you to pay your property taxes in the most convenient way possible.

If your taxes are delinquent–or close to it–consider a property tax loan to avoid these dire consequences.

© 2013 FYP, LLC.