{"id":43,"date":"2023-03-14T00:08:02","date_gmt":"2023-03-14T00:08:02","guid":{"rendered":"https:\/\/www.pargofinancial.com\/blog\/?p=43"},"modified":"2023-05-11T22:54:27","modified_gmt":"2023-05-11T22:54:27","slug":"back-taxes-if-you-cant-pay-theres-solutions","status":"publish","type":"post","link":"https:\/\/www.pargofinancial.com\/blog\/back-taxes-if-you-cant-pay-theres-solutions\/","title":{"rendered":"Can’t Pay Your Income Taxes? Some Solutions"},"content":{"rendered":"\n

Can’t Pay Your Income Taxes? Some Solutions
Did you skip filing or request an extension on your 2021 or 2022 taxes because you couldn\u2019t pay<\/a>? You have several options.

Some possibilities if you are unable to pay your income taxes You wait until the last minute to prepare and file your income taxes, only to receive a very unpleasant surprise: You owe money, and you don\u2019t have it to give. Even if you file for an extension, the IRS still expects you to send in what you estimate you\u2019ll owe. If that\u2019s absolutely impossible, you should always try to send in what you can.

The first thing you should do, of course, is to review your 1040 again. Did you take all of the credits and deductions that you should have? Or make any calculation errors? Did you somehow overstate your income?

If after checking your return you still see that large number on line 37 (Amount you owe), try not to despair. And certainly, don\u2019t neglect to file. Instead, take advantage of one of the many options you have.

tax tips
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back taxes<\/p>\n\n\n\n

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If you have to enter a big number on line 37 and you lack the funds to pay the IRS<\/a>, there are several different steps you can take.

Try to Get a Loan
This is the best solution if it\u2019s possible. Consider approaching family members who you know might have enough disposable income to help you out temporarily. If that\u2019s not possible, check with your bank or credit union or online lenders. Paying interest may be more economical than dealing with IRS penalties and interest \u2013 and less harmful to your tax-paying history.

Set Up an Online Payment Plan<\/a>
If you qualify (and most individual taxpayers do), you can set up an online payment plan through the IRS itself. You don\u2019t have to contact the agency. Once you\u2019ve provided the required information, you\u2019ll be notified immediately about your approval status. There are two types:

Short-term payment plan. This is designed for taxpayers who owe less than $100,000 and are going to repay it in 180 days or fewer. There are no other fees for this.
Long-term payment plan. This is also known as an installment agreement, and it usually involves a setup fee, though low-income individuals might be able to have the fee waived or reimbursed. Your total debt to the IRS must be less than $50,000 (combined tax, interest, and penalties), and you\u2019re required to make monthly payments. If you filed your return on time, your late-payment penalty will be reduced from up to 1 percent per month to 0.25 percent per month for as long as the installment agreement is in effect.
Offer in Compromise
It may be possible for you to settle your tax bill with the IRS and pay less than what you originally owed. You can see if you\u2019re eligible by visiting this site and completing the multi-step questionnaire.
tax tips

You can use this IRS tool to see if you pre-qualify for an Offer in Compromise, which could reduce your tax bill

Delayed Collection
If you are absolutely unable to pay and the IRS can confirm this, the agency may delay collection until your finances improve. Call the number on your notice to request this action, or call (800) 829-1040. Interest and penalties will continue to accrue during the delay.

Penalty Relief
You could get your late-payment penalties reduced or eliminated if you have reasonable cause, as defined by the IRS. The agency decides whether you\u2019re eligible for this on a case-by-case basis. If you have a solid history of compliance, the First Time Abatement program may be available to you.

Planning Ahead Helps
It\u2019s good to know that there are options if you can\u2019t come up with enough money to pay your tax bill, but you can probably avoid that situation if you do year-round tax planning. Looking at your income and expenses\u2014especially the major ones\u2014in terms of their effect on your taxes can go a long way toward avoiding surprises at filing time. Let us know if we can help you develop such a strategy.<\/h3>\n","protected":false},"excerpt":{"rendered":"

Can’t Pay Your Income Taxes? Some SolutionsDid you skip filing or request an extension on your 2021 or 2022 taxes because you couldn\u2019t pay? You have several options. Some possibilities if you are unable to pay your income taxes You wait until the last minute to prepare and file your income taxes, only to receive […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[5,9],"tags":[],"yoast_head":"\nCan't Pay Your Income Taxes? 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