Tax season can be stressful—especially if you realize you owe more than you can afford to pay. The good news? You have options. And the worst thing you can do is ignore the situation. The IRS actually wants to work with you—but only if you take the first step.
Here’s a breakdown of what to do if you can’t pay your taxes on time:
1. Always File Your Return (or an Extension)
Even if you can’t pay, filing your return is essential. Not filing can lead to much more serious consequences, including penalties and interest that build quickly—and even actions like wage garnishment or passport restrictions.
Filing lets the IRS know you’re being proactive. If you need more time, file for an extension by April 15 to avoid failure-to-file penalties.
2. Look Into Free Help
You’re not alone. The IRS partners with organizations that offer free help to those who qualify. Volunteer Income Tax Assistance (VITA) programs are available nationwide and can help you file your return or set up a payment plan.
To find one near you, visit the IRS Free File page at irs.gov.
3. Explore IRS Payment Options
Can’t pay your full bill right away? That’s okay. The IRS offers several tools to help you manage your balance:
4. Don’t Ignore IRS Notices
Once you file, stay engaged. If you receive a notice from the IRS, respond promptly. They’re often willing to work with taxpayers—but communication is key.
5. Hardship Happens—You’re Not Alone
Life throws curveballs. Job loss, illness, and other financial setbacks happen to many people. “We see taxpayers who are rarely in debt but suddenly face a year where everything goes wrong,” says Tom O’Saben of the National Association of Tax Professionals.
Being honest with the IRS about your situation can go a long way.
Final Thought:It might feel overwhelming now, but not taking action will only make things worse. File your return, seek help, and know that solutions are available. You don’t have to go it alone—and the IRS is often more flexible than you’d expect.
Need help navigating your tax situation? Consider working with a tax professional who can help you explore your options and advocate on your behalf.
Read the AP Article in the Daily Herald: www.dailyherald.com/20250329/finance/what-to-do-if-you-cant-pay-the-taxes-you-owe/
Here’s a breakdown of what to do if you can’t pay your taxes on time:
1. Always File Your Return (or an Extension)
Even if you can’t pay, filing your return is essential. Not filing can lead to much more serious consequences, including penalties and interest that build quickly—and even actions like wage garnishment or passport restrictions.
Filing lets the IRS know you’re being proactive. If you need more time, file for an extension by April 15 to avoid failure-to-file penalties.
2. Look Into Free Help
You’re not alone. The IRS partners with organizations that offer free help to those who qualify. Volunteer Income Tax Assistance (VITA) programs are available nationwide and can help you file your return or set up a payment plan.
To find one near you, visit the IRS Free File page at irs.gov.
3. Explore IRS Payment Options
Can’t pay your full bill right away? That’s okay. The IRS offers several tools to help you manage your balance:
- Installment agreements: Set up monthly payments over time.
- Offer in Compromise: If you truly can’t afford to pay your full balance, you may qualify to settle for less.
- Currently Not Collectible: In extreme hardship cases, the IRS may pause collections entirely.
4. Don’t Ignore IRS Notices
Once you file, stay engaged. If you receive a notice from the IRS, respond promptly. They’re often willing to work with taxpayers—but communication is key.
5. Hardship Happens—You’re Not Alone
Life throws curveballs. Job loss, illness, and other financial setbacks happen to many people. “We see taxpayers who are rarely in debt but suddenly face a year where everything goes wrong,” says Tom O’Saben of the National Association of Tax Professionals.
Being honest with the IRS about your situation can go a long way.
Final Thought:It might feel overwhelming now, but not taking action will only make things worse. File your return, seek help, and know that solutions are available. You don’t have to go it alone—and the IRS is often more flexible than you’d expect.
Need help navigating your tax situation? Consider working with a tax professional who can help you explore your options and advocate on your behalf.
Read the AP Article in the Daily Herald: www.dailyherald.com/20250329/finance/what-to-do-if-you-cant-pay-the-taxes-you-owe/
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