What If ?

The economic downturn has many of us asking: "What if...?" Changes in your financial situation -- such as job loss, debt forgiveness, or tapping a retirement fund -- can have significant tax consequences. The IRS published a list of answers to some of the tax questions people are asking. One such question: "What if I can't pay my taxes?" Answer: You should still file your return by the deadline to avoid late filing penalties and interest. Contact the IRS to discuss your payment options, and the agency may be able to provide some relief such as a short-term extension to pay, an installment agreement or an offer in compromise. To view all the "What ifs," please visit http://www.irs.gov/newsroom/article/0,,id=201853,00.html