Unable to pay the IRS taxes for 2011 or by April 17th? If so, you have several options for paying your taxes when you don't have the money available in the short-term or the long-term.
When deciding which option is the best for you, you'll want to consider how much time you need and how much each option will cost you in fees and interest.
To reduce interest and penalties, pay what you can by April 17th, without jeopardizing your basic living necessities. When in doubt, consult with the IRS and/or a tax professional.
Defaulting on an IRS Installment Agreement or Federal tax payment plan will be primarily brought about by a few scenarios. Remember, just because you defaulted does not meet your agreement is terminated. However, regardless of the manner in which you have default, stay in contact with the IRS.
If you are not capable of paying your tax debt to the IRS in one payment, the IRS offers several tax payment plans or Installment Agreements in order to help you pay off tax debt without serious financial hardship. When considering an Installment Agreement, it is important to be aware of a few things associated with them.
Series of Monthly Payments
Not being able to pay your taxes is likely not as bad as you think it is. Everyone has heard the stories of the IRS taking homes, cars, boats, and other things that devastate people's lives. The truth is, the IRS is very willing to work with taxpayers that are having financial problems.