It’s the letter no one wants to get in the mail—a tax bill from the IRS, or Internal Revenue Service.
We all know that paying taxes is a requirement in life, but it’s never easy to find out that you owe thousands of dollars. Even worse, what if you find yourself saying, ‘I owe the IRS but don’t have enough money to pay!”.
Yes, it’s a stressful situation, but the good news is that you have options. Here are a few options for paying your taxes, even if you’re short on cash.
Context
- I Owe the IRS! Here Are Your Options
- Pay in Installments
- Get Legal Help
- Find the Money to Pay in Full
- Make an Offer in Compromise
- If You’re Saying, ‘Help, I Owe the IRS!’, These Tips Should Help
I Owe the IRS! Here Are Your Options
Pay in Installments
If you’ve been stung with a huge tax bill, you might want to manage your IRS payments with an installment agreement. This allows you to pay your tax bill in small monthly amounts, over time, instead of a lump sum.
This can make your taxes much more manageable.
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Get Legal Help
Sometimes, it’s possible to be accused of violating tax laws, leading to harsh penalties from the IRS. However, if you’ve been falsely accused, we recommend getting professional help.
There are plenty of experienced law firms that can offer legal advice to solve your tax problems.
Find the Money to Pay in Full
If you’re able, you might want to pay your tax bill in full. This way you can be done with it for the next 12 months and it’ll feel like a weight’s been lifted from your shoulders.
Depending on the amount owed, you might want to pay it off using some of your savings or even see if you can borrow a small amount from relatives. You can also pay the IRS with your credit card, as long as you have a line of credit large enough.
Or, if you need more time to get your finances together, you can ask the IRS for an extension—but they might charge interest fees.
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Make an Offer in Compromise
In some circumstances, the IRS will let you make a lower offer. This is known as an and means you’re not able to pay your tax bill, but you offer an amount that you can afford.
Generally, this is only accepted for people experiencing severe financial hardship or not earning much money. If you have a lot of assets, like a home, you might not be approved though.
If You’re Saying, ‘Help, I Owe the IRS!’, These Tips Should Help
There’s nothing more stressful than having to say, ‘I owe the IRS—what do I do?’. We all know we can’t dodge tax bills forever, so the best thing to do is figure out how to pay.
With the tips above, you should have a few new ideas about how to approach your situation. However, if you’re in serious financial strife due to tax, it never hurts to talk to a financial expert to get advice.
Once you pay your taxes, it’ll feel amazing to be done and dusted!