I owe taxes and can't pay. What should I do?

February, 14 2020 by Steve Banner, EA, MBA

The first thing to do is take a deep breath and realize you’re not alone. The IRS expected that about 30 million people would owe them money in 2019 after they filed their taxes. That’s about 21 percent of US taxpayers. This was mostly caused by changes to the tax code that meant many people did not have enough tax withheld from their wages, and then there were others who made mistakes on their tax return or forgot to declare certain items of income. But no matter the cause of each person’s tax debt, there are a number of different programs offered by the IRS to help taxpayers get back into the good books. Below are just some of the options available to you.
 

• Of course, each case is unique, and there is no silver bullet that works for everyone, but one possibility is that you may be eligible to set up a monthly payment plan called an Installment Agreement to settle your debt.
• Or you may be able to come to an agreement with the IRS that results in the reduction of your debt to an amount that is more manageable for you. This is called an Offer in Compromise.
• Another option is you may be able to take any penalties that the IRS has imposed and have them reduced or even eliminated.

I know this all may sound too good to be true, but the IRS would like to get its money sooner or later and realizes that not everyone has a money pit in their backyard. Although there are a number of IRS programs that can help make life easier for taxpayers who find themselves in this situation, the hard part is figuring out which program is the best fit for each individual case.

This is where TaxAudit can help, as our experienced tax professionals will help you figure out the best IRS tax debt settlement option for you. It all starts with a free consultation by phone, where one of our licensed tax professionals will answer your initial questions and determine if we can help you based on your specific tax situation.

See? I told you that you’re not alone!

For more information and to review all tax debt relief solutions, please click here.