What if you can’t pay your taxes?

Facing an unexpected tax liability or a financial hardship can be stressful. You are not alone, and as long as you face the situation head-on and make an honest effort to right the ship, the IRS will typically work with you. We have helped many clients navigate this situation, and we can help you! Here are some helpful tips.

1. File Your Tax Return: Even if you can't pay the full amount, it's crucial to file your tax return on time. Failing to file can lead to additional penalties.

2. Pay What You Can: If possible, make a partial payment. This can help reduce interest and penalties on the unpaid balance.

3. Set Up a Payment Plan: The IRS offers installment agreements that allow you to pay your taxes over time.

4. Consider an Offer in Compromise: On rare occasions, if you can demonstrate that paying your full tax liability would create a financial hardship, you might be eligible for an Offer in Compromise, which allows you to settle your tax debt for less than the full amount.

5. Request a Delay in Collection: Still rare, but more common than an Offer in Compromise, If you're facing significant financial hardship, you can request that the IRS classify your account as "Currently Not Collectible" status.

6. Keep all of your IRS communications: Pay attention to due dates on notices. Ignoring notices can lead to more severe consequences. Upload any notice you receive to our portal and notify our team so we can support you.

7. Beware of Fraud: The IRS will not call or email you. It is rare for the IRS to initiate aggressive action without several months, sometimes years, of attempts to collect. Trust your gut. If you feel like something is not right, call the IRS directly at (800) 829-1040 to verify.

8. Get in touch with us before a small problem becomes a big one. We will help you explore these options and make a game plan for success. The sooner you address it, the less stress you will experience.