Tax Tips & Insight
What to do if you can't pay your Taxes Right Away
Options and strategies when you can't pay your full tax bill
Can't pay your tax bill in full? You're not alone, and the IRS offers several options to help. Understanding payment plans, offers in compromise, and other relief programs can help you resolve your tax debt without financial hardship.
File Your Return on Time Anyway
Always file your tax return by the deadline, even if you can't pay.
The failure-to-file penalty is much higher than the failure-to-pay penalty.
Filing on time stops the failure-to-file penalty and shows good faith.
You can request a payment plan or other relief after filing.
Pro Tip:
Pay as much as you can when you file - it reduces interest and penalties on the remaining balance.
Short-Term Payment Extension
Request up to 120 days to pay in full - no fee required.
Interest and penalties continue to accrue.
Apply online through the IRS website or by phone.
Best option if you can pay within a few months.
This option doesn't require a formal payment plan application.
Installment Agreement (Payment Plan)
Monthly payment plans available for balances up to $50,000.
Online application available for plans up to $25,000.
Setup fees range from $0 to $225 depending on payment method.
Interest and penalties continue until paid in full.
Automatic withdrawal from bank account reduces setup fee.
Offer in Compromise
Allows you to settle your tax debt for less than the full amount.
Available if you can prove you cannot pay the full amount.
Requires detailed financial information and documentation.
Application fee of $205 (may be waived for low-income taxpayers).
Complex process - professional help is recommended.
Get Professional Help
Tax debt resolution can be complex and stressful.
A tax professional can help you choose the best option and navigate the process.
Taxcodes LLC specializes in tax debt resolution and can help you find the best solution for your situation.
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