Can't Pay? You're not alone. With the currency economic downturn, thousands of taxpayers can barely cope. If you can't pay the full amount of taxes you owe, still file your return by the deadline and pay as much as you can to avoid IRS penalties and interest.
Here are some alternative payment options to consider:
Additional Time to Pay
If you have extreme of hardship circumstances, the IRS may grant a short "additional time to pay" your tax in full. Taxpayers can be granted an additional 30 to 120 days to pay the tax in full and will usually pay less penalties and interest than if the debt was paid through an installment agreement.
Since few people will qualify for Additional Time to Pay, you can always apply for an IRS Installment Agreement. This will allow you to pay the IRS in monthly installments. But watch out, you absolutely cannot default without serious penalties. And penalties and interest will continue to accrue on the account.
Credit Cards or Loans
If you have money on your credit card, use credit to pay the taxes in full. Additionally, you can use a loan to pay the IRS. The interest on credit cards and loans are lower than the IRS's interest rates.
Need Help? If you have a complicated tax issue and mountains of tax forms to go through, you might not make it to the deadline. Consider hiring a reputable professional to help you with the process from here. And next year, be prepared and file early!