What to Do When You Owe the IRS Money
Most people don’t set out to owe the Internal Revenue Service (IRS) money, but sometimes it just happens. Perhaps you made some errors on your tax return or you had too little withheld during the year, and now you owe them money and you don’t know what to do. No matter what caused you to get behind in your taxes, one thing is certain—you will have to pay money to the IRS.
But what do you do if you don’t have the money in a bank account? How can you pay the IRS the money you owe them? Here’s what to do when you owe the IRS money.
Ways to Pay Delinquent Taxes
There are several ways you can pay the IRS the money owed. Which method you choose to use will depend on your personal situation, your income, other liability you may have, and how much you owe.
- Offer in Compromise – One way to pay the IRS and become square with them is to negotiate a settlement. Sometimes, the IRS will agree to allow you to pay less than the total back taxes owed, if you have good reason. You will have to meet their requirements, but this is a good option for handling your back taxes.
- Installment Agreement – For many taxpayers, an installment agreement is all they need to get their back tax liability under control. Monthly payments can be an affordable option, rather than paying your taxes in one large lump sum.
- Penalty and Interest Relief – Another option that can help you pay off your tax liability is to reduce the amount owed. If you qualify, the IRS might agree to remove some or all of the penalties and interest that have accrued on your tax bill.
Tax Relief Assistance Is Just One Call Away
There are many other options for paying the IRS and handling your back tax liability. A tax attorney will also know what to do when you owe the IRS money. They can examine your situation to come up with the best solution for you. Call The W Tax Group at 877-500-4930 or complete the form below to claim a free tax liability analysis.