What if you can’t pay what you owe the IRS?
If you are like most Americans, you keep your fingers crossed that the IRS will owe you a nice, fat refund check upon filing your final return. But does this always happen? Of course not. Every year, millions of disappointed taxpayers learn that they owe the IRS money, not the other way around. In this case, you will be asked to send a check to cover this liability. Do you have the money to do so?
As you can imagine, some people do not have enough money in reserves to send the IRS a check for additional taxes. If you are in this position, you need to know your options. After all, the IRS is not going to let you off the hook. One way or the next they are going to get the money that you owe them in back taxes.
The best thing that you can do is to call the IRS and explain that you do not have the money to pay them in full. This will take some time, but you must do so nonetheless. It is better to communicate with the IRS than to sit back and hope that they forget about you, because that is never going to happen.
Believe it or not, the IRS is not an evil entity. If you cannot afford to pay them in full, they will help you to setup a payment plan. Of course, if you are going this route you will be subject to penalties and fees. And although this is more money that you have to pay out of your pocket, at least you are doing the right thing.
If you can’t pay the IRS what you owe, make sure that you discuss your options with them at once. The longer you delay the more complex and costly your situation is going to become.
