Help! I can’t pay my taxes in full. What do I do now?

On: April 26, 2023

If you already know that you won’t be able to pay your tax bill in full, you may be panicking at this very moment. Failing to pay your taxes can result in both fines and criminal charges.

The good news is that you do have options available to you that can help you stay on track with the IRS and pay down your tax debt at the same time.

Do I have options or am I out of luck?

Fortunately, if you are unable to pay your taxes in full, you do have options available to you. Understanding these options is crucial to ensure that you make sure your tax debt is paid. Failing to pay your tax debt can lead to fines, which will quickly add up.

We understand that you may feel overwhelmed at this very moment, as many people do. Tax debt is not something you want to carry around with you. If you are struggling to pay your taxes in full, it is important to work closely with an experienced tax professional who can go over your options with you.

Can I have extra time to pay? 

If you owe money to the IRS but you cannot make a full payment right now and only need a little extra time to pay, then you may qualify for additional time to pay. You can receive up to 180 days of extra time to pay the taxes you owe.

What is an installment payment plan?

An installment payment plan is a plan that allows you to make payments on the lump sum that you owe to the IRS. It is important to keep in mind that the IRS will decide what amount they are willing to accept monthly on your behalf. They do take into account factors such as your income, assets, the amount you owe, and what you can afford to pay. It is recommended that you work closely with a tax professional to ensure you can afford the payments.

Paying down your debt under an installment plan is easy with a few options to remit payment including:

• Payroll deduction
• Mailing in a check
• Monthly direct deposit from your bank account

What is an Offer in Compromise?

An offer in compromise is an option available to eligible taxpayers that allows you to settle your tax debt with the IRS for less than the full amount that you owe to them.

There are eligibility requirements that taxpayers must meet or the offer will be rejected by the IRS. It can be very difficult to receive an approved offer in compromise, so it is vital that you work with a tax expert who can guide you.

Leading Tax Group – We Can Help You with Your Tax Situation 

If you need assistance understanding your options to pay down your tax debt, it is important that you speak with an experienced tax accountant.

At Leading Tax Group, our team of IRS tax experts can help you understand what steps to take and assist you in filling out the proper forms for your situation.

Owing money to the IRS is not something you want to take lightly as it can result in hefty fines, penalties, and sometimes even criminal charges. Unfortunately, the applications and necessary documents needed to properly file for the right assistance from the IRS can be hard to understand and quite tricky.

The team at Leading Tax Group has years of experience handling issues with tax debt and can not only walk you through the available options but guide you and return a favorable outcome for you.

Don’t let your tax bill become a financial hardship and allow our team to assist you. Call us today for the best IRS tax representation in California!