The Deadline Has Passed but you still can't pay your tax debt. For you, Tax Season isn't over. And if you owe a lot, Tax Season might not be over for a long, long time.
What to do When You Owe the IRS
1. File Anyway- You may have missed the deadline, but it's better to get something into the IRS than nothing. Many people think not filing will keep them off the IRS's radar, and subsequently keep them from owing the IRS.
But Remember, failure to file is illegal, not failure to pay. So file your taxes!
2. Really Look at Your Situation- If you have cash in savings or valuable assets, the IRS will not let your off easy. If you can afford to pay, write the check and pay up now. Don't think you can evade this.
3. Get a Loan or Charge it- If you qualify for a loan or you have cash on your credit cards, consider paying your debt with either option. This will prevent you from getting stuck with the IRS's sky high interest rate.
3. Settle it- For those of you that are new to the game, you do have the ability to settle your IRS Tax Debt- but don't get your hopes up. Few people qualify, fewer people have the resolve to finish the convoluted process. But for those that do qualify for an IRS Settlement, or Offer in Compromise, it's worth a try to potentially slash thousands off of your tax bill. Use IRS Form 656, Offer in Compromise
3. Pay in Installments- Can you pay your entire debt in monthly installments? If that's a possibility, consider paying your debt with an Installment Agreement. This isn't exactly like paying your creditors monthly. The IRS will choose the amount you pay. Additionally, you cannot default on your payments without expecting severe consequences. User IRS Form 9465, Installment Agreement Request
Need More Help? If you owe the IRS back taxes for 2008, right now is the crucial time to act. If you feel daunted by taking on the IRS on your own, right now is a good time to hire a professional to work on your behalf. Whatever you choose to do, make sure you act fast.