Options for Taxpayers who Owe Taxes

If you owe taxes but can not pay the balance in full, the IRS has several options for you to pay the tax. Most importantly, make sure you file your return on time and pay as much as you can. Then, allow the IRS to help you with the best option to pay. Here are some options to consider if you can not pay the full amount of tax at this time.

  • Get a loan.   If you do not have the money to pay all your taxes now, you may want to get a loan from a bank or some other source. The interest rate may be lower than the interest and penalties on late payments IRS. You could also get a loan on their assets or sell them for cash.


Request an IRS Payment Agreement-Line

  • Request a Payment Agreement-Line:   If you can not pay all at once, then consider paying monthly. If you owe $ 50,000 or less, you could apply for a Payment Agreement. You can opt for a monthly electronic withdrawal of funds from your credit or debit card for a period of up to 72 months. That way you will not have to worry about writing a check every month and send it on time. So do not forget to make the payment or pay late. If you do not have Internet access may request Form 9465 , Application for Deferred Payment Plan.  The IRS can also help if your tax liability exceeds $ 50,000 and requires more than six years to pay the balance. In such cases, the IRS can ask for more financial information. See Form 433-A or  433-F , Collection Information Statement.
  • Request a Bid Agreement as a last resort.  Offer Agreement , (OIC) for its acronym in English, is an agreement between a taxpayer and the IRS that establishes the tax liability of the taxpayer in an amount less than the total amount owed. Generally, the IRS will accept the offer if it represents the potential that could charge in a reasonable time. The IRS considers several factors in deciding on your offer. Use the tool Offer in Compromise Pre-Qualifier tool on IRS.gov to determine if they meet the requirements to be eligible for an offer in compromise.


Options for Taxpayers who Owe Taxes

The IRS has increased the amount owed ​​by taxpayers before sending a Notice of Federal Tax Lien .Find more information on this topic in IRS.gov. Additional Resources IRS