If you’re still freaking out about your taxes, there is a solution that can be accomplished within a week. I’m talking about borrowing money to pay the tax man.

The IRS is very much in favor of this option, even encouraging you to set up a payment plan anyway for some reason. 

As I was looking for some good sources for this post, I came across an article by Bank of America. I got my garlic necklace and wooden stake from the closet, just in case. To their credit, the article stuck to the facts.

There are three types of loans available to people: 

  • Home equity loan
  • Personal loan
  • Liquid asset secured financing loan

Of these three options, liquid asset secured financing is the one you can obtain within a week. It involves pledging the contents of your brokerage accounts — like stocks — as collateral for the loan. Even if you are liquid, there are several ways to actually save money by taking a loan, mostly by having higher returns on your investments because the money was still there, growing.

Home equity loans and personal loans take a longer time for approval, but remember the IRS compounds interest monthly. The finance charges for the loan need to be compared against the IRS’s penalties. Keep in mind though, several IRS programs are available only to taxpayers who paid on time for three consecutive years. 

I really can’t help you with this stuff. What I can do is give you a referral to a trusted financial advisor or CPA. JHA is here for you in the lead up — and the maintenance phase. 

Contact us for more information.