Owe taxes

[Britbr1]

Hello, 

What happens if you owe taxes but can’t pay? 

[MarionH]

If you owe taxes and don't have the funds to pay, it's crucial to still file your return. Avoiding filing will only worsen the situation with late payment fees, interest, and possible late filing penalties if you miss the April 15 deadline and didn't file an extension.

Using TurboTax, you can file your return and select the "Mail My Payment" option. This allows you to file without paying immediately. After your return is processed, you can set up a payment plan on IRS.gov.

For more information on payment plans, visit: IRS Payment Plans FAQs.

@Britbr1  Thanks for the question!!

[user17582309865]

The IRS offers several payment options for tax debt:

1. Installment Plans: Both short-term and long-term plans are available. To apply, you need to create an IRS Online Account if you don’t already have one. Learn more here: IRS Installment Plans.

2. Offer in Compromise (OIC): This allows you to settle your tax debt for less than the full amount owed, often considered when full payment causes financial hardship. Applying for an OIC involves tax compliance and detailed financial review. More details can be found here: IRS Offer in Compromise.

Evaluate your options and choose what works best for your situation.

@Britbr1 Thanks for the question!!

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