What To Do If I Can't Pay Taxes?

Tax extension deadline is soon. Everyone who owes the IRS must pay by October 17, to save those in disaster zones.

The IRS said that 19 million Americans filed their taxes for 2021. But since April 18, penalties for unpaid balances have gotten worse.

Despite that, people don't know what to do or how to pay their taxes. Some taxpayers owe the IRS a lot of money, but there are solutions for every plan.

It is a "long-term monthly payment plan through the IRS." 

What to do if you owe back taxes?

1. Request an instalment agreement

Those taxpayers who have a tax debt to the IRS that is less than fifty thousand dollars should apply for an instalment plan online.

The IRS gives you the option to pay less than you owe. Offer in compromise is another way to deal with your IRS debt.

2. Make a compromise offer: Settle for less

To be eligible for the "Offer for compromise" option, you should be up-to-date on all of your tax returns, unless you have a valid extension.

The penalty relief helps taxpayers who were unable to pay the IRS because of "circumstances beyond their control."

3. Penalty relief

If there is enough evidence to show that you missed the deadline by accident or for a good reason, the IRS will waive the penalty.