When You Can’t Afford to Pay Your Taxes

What To Do
Tax season arrives and you determine that you owe the IRS more money than you have to give them right now. You are considering not filing your taxes yet you know, in the back of your mind, that this will just make the situation worse. The good news is there are options and today we will be discussing what to do when you cannot afford to pay your taxes.
File Your Taxes
Even if you do not have the money to pay, it is still important to file your taxes before the deadline. You will be penalized for paying late but it is better than being penalized for filing late too. Therefore, always make sure you file your taxes on time.
Gather as Much Money as You Can
Try to use all of your resources to gather up as much of the money as possible. You could consider taking out a loan, going into your savings, or using your credit cards. This way you can show the IRS that you know your debt exists and you are doing everything that you can to get them the money.
Pay When the Money Becomes Available (If it is a short wait)
If you just need until your next paycheck to pay your taxes just wait it out and pay the additional interest. The IRS will send you a bill, which states the amount due as well as the interest you will have to pay for paying late. When the bill arrives just pay it once your paycheck arrives.
Ask For an Installment Plan
The IRS works with those who do not have the money to pay their taxes in full. You are not the first person to have found yourself in this situation. Therefore, when you file your taxes request an installment plan, which will allow you to make payments on your taxes over a certain period. To make things easier you can even have direct deposit set up to insure your payments are made on time.
Considering Your Options
It is very important to pay your taxes. Therefore, when you find yourself unable to pay your taxes you have to consider all of your options to see which one is the best for your personal situation. Just remember you are required to file your taxes on time regardless of whether or not you have the money to pay.