What if I Can Not Pay My Taxes?

So you've just prepared your taxes - or better yet, you haven't started but you know with certainty that you cannot afford to pay on time. Want to remove that constant stress hanging over your head? Luckily, the IRS has already taken measures to help taxpayers in your exact situation. Here are some tips for getting yourself in the clear:

Tough it Out & Scrape Up the Money

First of all, don't panic! Next, don't delay! Take a deep breath and try to figure out how much of your tax debt you can actually afford to pay now.

You should always file your tax return on time to minimize your tax penalties. Even if you can pay nothing, you should file on time to avoid a greater penalty. Likewise, you should always pay as much as you can in order to minimize penalties, because your penalties will be based on the amount you still owe. Learn more about tax penalties.

Whether you owe hundreds or thousands, you should really ask yourself, "Can I obtain this money?" Have you thought about using your credit card or tapping your savings account? Are you able to cash out your paid time off from work? You might be able to borrow against your retirement account. These are all viable ways to obtain money in a pinch. If these options don't work for you, continue reading.

Making Tax Decisions Isn't Easy

It's important that you take your taxes seriously. Review all of your options and choose the one that is best suited for your situation. Of course, to avoid the late penalty, it's always best to file your return on time. efile.com can help you file a quick, easy & accurate tax return. Find out what you REALLY owe before you file using these tax estimators. It only takes seconds to get started now and you'll be walked through the entire e-file process with ease. Our service encompasses tax help, resources, and a comprehensive list of tax deductions to help you save the most money on your return when you need it the most.

Did Someone Say Installment Plan?

Yes that's right, the IRS, just like most companies, would rather get paid at some point rather than not at all. If you cannot scrape up the funds to pay in full, the IRS has several options for you:

• If you believe you will be able to pay the full amount soon, call the IRS at 1-800-829-1040 to see if you qualify for a short-term extension on time to pay.
• If you wish to pay off your debt over time instead of in one lump sum, an installment agreement may be the payment plan for you. Your payments can be mailed each month or be directly debited from your bank account on a set schedule. Learn more about installment agreements.
• If you owe a large amount of tax and do not believe you will ever be able to pay off the entire amount, you may be able to settle your tax debt for less than the full amount with an offer in compromise. Learn more about offers in compromise.

Recent IRS announcement on owing taxes

More information about how to pay your taxes