The Dreaded Tax Day:
April 15th is a day most people look on with dread. So what do you do when you owe the IRS money but don’t have the ability to pay? If you can’t pay the IRS you have a few options.
Option 1: Enter into an installment agreement with the IRS. The IRS will usually enter into an installment agreement with you if owe less than $50,000. The application process for entering into an installment agreement is a pretty simple one that can be done over the internet. It usually takes about 5-10 minutes to complete.
Option 2: Propose an offer in compromise to the IRS. When you do not have and will not have the ability to pay the tax you can propose an offer in compromise to the IRS. This is an offer in which you pay less than the full value of the debt in full satisfaction of the debt.
Option 3: If debt is stacking up and you owe the IRS and many other creditors you might consider filing for bankruptcy. Bankruptcy can provide you with some much-needed breathing space while you re-organize your affairs. If the tax debt is old and meets certain other criteria it may be dischargeable. An attorney specializing in offer in compromise, bankruptcy, and other debt relief solutions can provide you with your options.