If you find yourself in the situation of owing money to the IRS and also to business creditors, credit card companies, or others, it can be difficult to know which to pay first when cash is limited. It may seem smartest to pay off the business creditors first so that you can keep your doors open, or to pay your mortgage first so that you keep your house.
Here is an article that explains why paying the IRS first is usually your best move, because they will get their due one way or another, and paying it up front is the least painful method.
Disclaimer
The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
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