Do you get a refund from the federal government at tax time? Or do you owe taxes? If the latter, paying the balance can be difficult if you owe back taxes. The IRS can charge you a monthly penalty , and penalties and late fees can make paying the balance off impossible without assistance. Seek help now with the IRS or a third party!
Contact the IRS to discuss your financial situation. They will work with you. And before you send a check, request a temporary delay and make arrangements for payment installments. The IRS will grant you a temporary delay if that agency deems your financial situation eligible. But late fees and penalties may still continue to accrue throughout the duration of any installment agreement or temporary delay. If your back tax balance is $25,000 or less, the IRS is more likely to accept your installment request, but the monthly payments you offer to make must satisfy the entire debt within 60 months in most cases.
Do you have a serious hardship? If so, another option for you is to request an Offer in Compromise (OIC) to settle back taxes you owe for an amount lower than the expressed balance. Read more about back taxes in our main article before it is too late.
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