There are number of options and programs available for taxpayers who are having difficulty or unable to pay their taxes. First, there’s something called an installment payment plan and that enables you to workout an arrangements with the IRS to pay an amount that you can pay each month over either the life of the statute of limitations or a shorter period of time. if you can afford to pay it.
If it’ll appears you’ll probably never be able to pay, there’s something called an Offer and Compromise whereby they can reduced the amount that you owe. But in each of these methodologies, you have to complete an IRS form 433, 433A or 433B, which is a financial statement under penalties of perjury which explain your sources of income, expenses, assets, liabilities, etc. Sometimes, we can get penalties abated; sometimes we actually find out you may not owe the amount of money the IRS says you owe or even that you think you owe.
So there are lots of programs available and it’s important that someone review what it is the IRS says you owe and to understand your particular financial circumstance. If any case you paying it over time, you need to remember that late payment penalties and interest continue to accrue on the unpaid balance.See all videos