You can file an Installment Agreement in TurboTax as you're going through the filing process. When you come to the section to pay your taxes you will have an option to submit an Installment Agreement.
"The most common way to handle a tax bill that you can’t pay immediately is to set up an installment agreement which allows you to pay your tax debt over six years. If you owe $50,000 or less in combined tax, penalties and interest and filed all required returns, you can request consideration for an installment agreement by going online and using the IRS Online Payment Agreement Application.
The IRS does charge a setup fee for a long-term installment agreement, and interest and penalties will also apply to the taxes you owe until they are paid off. Although you will be charged interest and late payment penalties until the taxes you owe are paid in full, the failure to pay rate is decreased from .5% to .25% per month while your installment agreement is in effect." Unable to Pay Your Tax Bill? Here’s What to Do.
You can also file an Offer in Compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
- Ability to pay
- Income
- Expenses
- Asset equity
If this does not completely answer your question, please contact us again and provide some additional details.
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