Unable to Pay Taxes for 2011 by April 17th? You Have A Few Options
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.
IRS Allowable Expenses 2011: If You Owe Taxes & Cannot Pay
If you think that you can get away with not paying taxes that you owe the IRS, think again. Very few people ever get out of paying tax debt and when they do, it is usually because they have successfully proven that they honestly are unable to pay their tax debt now and most likely will never have the funds to pay it in the future.
If you owe the IRS money and can show the IRS you truly cannot afford to pay in full, it is rare and often times cumbersome to settle your debt for less with mechanisms like an offer in compromise, partial payment installment agreement and so forth.
Generally, when you owe taxes and believe you can't pay in full, be prepared for the IRS to thoroughly examine your income and expenses. They normally can obtain this information from a 433-A, 433-B, or 433-F. The IRS will ultimately make the final determination as to whether you can afford to pay your debt and, if so, how much you can afford to pay, using IRS Collection Financial Standards, which were revised and became effective 10/3/2011.
4 Options If You Can't Pay Your Taxes
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.