Dealing With The IRS If You Cannot Pay Your Taxes
You might be surprised to know that many people cannot pay their taxes when they come due. There is good news however if you are forced to deal with the IRS due to this situation.
The IRS understands that many times people cannot pay their income taxes and are willing to work out something with you to help you pay what you owe. The one thing you do not want to do is ignore your situation because it will only make it worse for you.
One common problem is people take an out of sight, out of mind approach when it comes to dealing with the IRS. The problem with this is your tax liability will not go away and will only continue to increase.
The IRS will continue to tack on interest and penalties until they reach a resolution with you. There are a few things you can do to deal with the IRS and get your taxes paid.
One thing is to just pay the tax amount in full and make the interest go away. Consider taking out a home equity loan or borrowing the money because the interest rate on this type alone is considerably lower than what the IRS is charging you.
If you feel confident that you will have money in the future you might contact a friend or even a family member and have them loan you the money to get the IRS paid right now.
Go through all of your stuff and see if you can sell things on Craig's list or eBay. Many people have thousands of dollars of things lying around that they no longer use that could be money available to pay off their IRS debt.
One final thing to mention is the IRS will allow you to set up an installment plan with them and this may be one way to pay back your debt on a monthly basis.