You may learn that you owe the IRS money for federal taxes and perhaps late fees and interest charges in several different ways. You may have prepared your return and determined that you owe money to the IRS. Perhaps the IRS has sent you a letter saying that you under-reported. In some case, taxpayers will be able to pay the amount owed in full, but there are other instances when the amount of money owed is simply too high.
Options for Paying Your Taxes
When you cannot pay your federal tax bill in full, there are a few options to consider. First, you could pay with a credit card or tap into other assets. Late fees, interest charges and other penalties can be costly and damaging, so it is best to avoid these when possible. You can also consider setting up a payment plan through the IRS. To do this, you would need to formally request the payment plan and wait for notice that your request has been approved. When these options are not available, you may need to explore other options, such as settlement with the IRS. You may benefit from working with a tax attorney who can represent your rights and who may prevent you from getting into legal trouble because of your tax issue.
Tax bills can unfortunately be high and unmanageable at times. After you have verified that the amount owed is correct, consider each of these options to pay your tax bill.