What if I am unable to pay my taxes due?

If you are unable to pay your taxes, the IRS has options that you may qualify for. Per the IRS.gov their online payment plans include:

• Short-term payment plan – The payment period is 120 days or less and the total amount owed is less than $100,000 in combined tax, penalties and interest.

• Long-term payment plan – The payment period is longer than 120 days, paid in monthly payments, and the amount owed is less than $50,000 in combined tax, penalties and interest.

  
  

If you do not qualify for the online payment plans, you can also request an Installment Agreement by submitting Form 9465, Installment Agreement Request PDF,

It is important to note that penalties, interest, and additional fees can still accrue, and agreements can be withdrawn if any terms are violated. What if I can’t pay my taxes? | Internal Revenue Service

While you may have a tax bill from last year, this is a good time to make adjustments and plan for this year.

• · Individuals:

  • Take a look at increasing your withholdings on your W2. This will adjust the amount of federal income tax your employer withholds for tax purposes.

• · Businesses:

  • o If applicable, stay on top of your Estimated Tax Payments throughout the year.

  • o Watch for communication regarding Tax Planning meeting. This will allow you to touch base with Kristal prior to year end and look at where you are at and if there is a way to help reduce your tax liability.

Some taxpayers find it more helpful to pay the IRS on a monthly basis as it is easier to budget their estimated tax payments. This is allowed as the IRS will never turn away your money!