You Want to Pay But...You Can't

This section is for taxpayers that want to pay their taxes but cannot pay the entire amount they owe. We will identify the options if you are unable to pay your tax debt bill in full when it is due. File your taxes on time and pay what you can. If you do not pay in full when you file your tax return the IRS will send you a bill for the remaining amount. If you are still unable to pay in full once you have received your bill you have several possible options. 

Installment Agreement Request

You may be able to get an extension time to full pay or pay the amount you owe in monthly payments. You can request and may qualify for an Installment Agreement allowing you to pay what you owe over time. You will be charged a fee to setup the agreement. If you want to make monthly payments you can access an Installment Agreement Request by clicking the active link provided or visiting the IRS.gov website. Mail the Installation Agreement Request form along with your tax return or payment to the IRS. You can use direct debt installment payments by filing out lines 11a and 11b on form 9465. Direct debt installment agreements require a lower user fee than other installment agreements and help you avoid default of the agreement by making timely payments automatically. 

Online Payment Agreement

Another option is the Online Payment Agreement (OPA). The OPA application can be found by clicking on the provided link or visiting the IRS.gov website directly. Follow the directions on the OPA page and access your online application. The IRS will determine quickly whether you are eligible. You may also be able to establish an installment agreement over the phone by talking directly with an IRS representative. The IRS representative will start by giving you his or her name and their ID number. The IRS representative will go through a series of options with you in order to resolve your bill. 

IMPORTANT TIP: Consider contacting an authorized tax professional to represent you with the IRS. The IRS collection employee’s responsibility is to represent the IRS and its interests. The IRS will prioritize tax debt owed to the IRS above all other debts or assets you may have. The IRS collection employee may suggest deferring payments on other debts, selling and liquidating business and personal assets, borrowing from friends and family members, using a credit card or high interest cash advance, taking out a loan using your home equity or other kinds of collateral or even finding a co-signer for a loan. You might ask why it’s preferable to take out loans, borrow on retirement plans, use a credit card to pay off your IRS bill. It might not be in your best interest. The IRS does NOT deem it their responsibility to consider the ramifications of these types of financial actions. They will not attempt to understand your financial situation in its entirety, not to mention your mental and emotion state. We encourage you to consider seeking the advice of an authorized tax professional in your area. 

If you qualify with the IRS for an Installment Agreement Request. The IRS will allow for your necessary living expenses. However not everyone qualifies for Installment Agreement. There are other possible options.

1. Offer in Compromise. An Offer in Compromiseis an agreement between you and the IRS to settle a tax liability with the IRS for less than the amount owed. You click on link provided below or visit the IRS.gov website for directions on how to submit an Offer in Compromise.

2. Temporary Delay of Collection. You may qualify for a temporary delay of collection if your current financial situation shows an inability to make any payment. You may be contacted later date to see if your ability to pay has improved. Penalty and interest will be continued to be charged on the amount you owe until paid in full. 

A Notice of Federal Tax Lien may be filed to protect the government’s interests in your assets. 

We have discussed the options available to you in order to pay the tax debt you owe. It is important that you take action; file on pay on time if possible and seriously consider your right to contact an authorized tax professional to represent you with the IRS.