How to Use the IRS as a Credit Card

How to Use the IRS as a Credit Card

Say your overall cash-flow situation is good, but you need to cover a short-term deficit over the next few months. In today’s still-strict credit environment, taking out a loan may not be much fun. It may not even be possible — unless you have access to an untapped home equity line of credit or a helpful relative. If that’s the case, great. If not, you may be able to turn to a surprising source for some help: the taxman.

If you’re self-employed, an investor or someone who lives off Social Security benefits, pension payments, retirement account withdrawals, and the like, you can apply for loan from the Internal Revenue Service. Better yet: To borrow from the IRS, you don’t have to fill out any annoying applications, prove your income or fence with a balky loan officer. While this may sound too good to be true, i

t is true. Read on for the details.

Increase Cash Flow by Temporarily Postponing Estimated Tax Payments

What you do is simply postpone some federal income tax payments that you would otherwise make to the IRS via estimated tax installments. You don’t need the government’s permission. You just do it and then make up the difference later. Of course, the IRS will charge interest on the difference between what you should have paid in for each installment and what you actually paid. However, the current interest rate on estimated tax underpayments is only 3%. While the rate can potentially change each quarter, it will probably remain at a reasonable level for a while.

The IRS calls the interest on estimated tax underpayments a “penalty.” But since the current interest rate is only 3%, it’s not really a penalty. In fact it’s actually a pretty good deal for someone with a short-term cash crisis. I’ve been there myself a few times, and I’ve done the borrow-from-the-IRS drill. (Please don’t tell my Mother!)              More

Get Free Email Updates!

Signup Now to Receive Updates and Alerts!

We will never give away, trade or sell your email address. You can unsubscribe at any time.

@https://twitter.com/candicelanier

Candice writes for several publications, including The Christian Post, Red State, The Black Sphere and Patriot Update. She is the Science & Tech Editor at the Minority Report Blog and the founder and Editor-in-Chief at Front Lines. She's also the founder of Candice Lanier's Tech News and works as a computer consultant. Additionally, Candice is an antiques dealer.

More in

952

Killed in Airstrike: Top ISIS Hacker On Pentagon Hit List Who Threatened Attacks on US Military

Candice LanierAug 27, 2015
The Goldman Sachs & Co. logo is displayed at the company's booth on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, July 19, 2013. U.S. stocks fell after benchmark equities gauges rose to records yesterday, after disappointing earnings from Google Inc. and Microsoft Corp. overshadowed better-than-forecast results from General Electric Co. Photographer: Scott Eells/Bloomberg via Getty Images

Somebody in China Has Set Up a Fake Goldman Sachs and Is Doing Business

Candice LanierAug 27, 2015
hillary organge 1

White House Insiders Track Move From Hillary To Warren

Streetwise_ITAug 25, 2015
940

Legal showdown looms over the NCAA’s ban on paying athletes

Candice LanierAug 24, 2015
trump 081115

The Donald- Not Exactly A Fan Of “New Tone”

Streetwise_ITAug 21, 2015
viewers view emails

EmailGate- The Sisters Have A Question

Streetwise_ITAug 18, 2015

The Minority Report is a network of websites devoted to Conservative & Libertarian politics in the United States. In 2014 the network had over 20 million page views!

On this site you'll find posts & links to some of the best and most comprehensive center-right news and opinion on the net...

April 2012
M T W T F S S
« Mar   May »
 1
2345678
9101112131415
16171819202122
23242526272829
30  

Archives

Copyright © 2014 The Minority Report Network