What if I can't pay my federal taxes?

dont try to duck it. contact them, make a payment schedule.as long as you stay current, they cant jail you. dont try to hide-the irs is very powerful, and scary.

Then you will have to set up a payment schedule with the IRS, or risk going to jail. It's your choice.

Start saving your money because they will make you pay

If you can not afford to pay your taxes, you need to request an offer in comprimise from the IRS. There are 2 ways to do it. For example if you owe $15,000 you can go to the gov. and say I have $7,000, can you take that amount and call it even. The other way is to fill out the form and say I will pay you X amount per month for the next 3 years. I must say that this is the one thing that does not go away. Why do you have this liablitiy? Do you prepare your own taxes? I would go and pay an accountant CPA to help you on this, they will give you sound advice and explain it, with respect to your peticular situation.

Ask the IRS for an extention or a payment plan over time as they do want and will collect from you in one way or another. Do it soon and remember to check your temper unless you want an audit. Good luck!

It's only against the law to not file, not to not pay. They'll never notice. Beauracracies.

No problem, they will take it out of your paychecks, until all money owed is payed....

Or I believe they may have some kind of payment plan you can sign up for.....but you only have like 4 months or something like that to pay.

You will go bankrupt!

who cares?? it'll just be used to fight the war in iraq, they don't need that much money anyways. Just keep the money and forget about it, you worked hard for it, why give it to somebody that doesn't appreciate the hard work you've done to get that money.

file form 4868 for an extention of time to pay

You can file an Installment Agreement application.
To be eligible for an installment agreement, all returns that are due must first be filed.

Installment agreements generally require equal monthly payments. The amount of an installment payment will be based on the amount owed and on the taxpayerâ€™s ability to pay that amount within the time legally available for the IRS to collect. By law, the IRS has the authority to collect outstanding federal taxes for ten years from the date of assessment. For taxpayers that enter into an installment agreement, the IRS may require a signed waiver to extend the time IRS can collect.

Fees to Set-up an Installment Agreement

The IRS charges a user fee of $43 to set up the installment agreement. It is possible for an installment agreement to be reinstated if the agreement defaults. Also, installment agreements may be restructured to include additional amounts owed in one agreement. Reinstating or restructuring an existing installment agreement will cost an additional $24 user fee.

How to Set-up an Installment Agreement

Taxpayers wishing to pay off a tax debt through an installment agreement, and owe:

$25,000 or less in tax, can call the number on the bill or notice (have the bill or notice available, along with the social security number). A fill-in Request for Installment Agreement, Form 9465, is available online that can be mailed to the address on the bill.
More than $25,000 in tax, may still qualify for an installment agreement, but a Collection Information Statement, Form 433F may need to be completed. Call the number on the bill or mail the Request for Installment Agreement, Form 9465 and Form 433F to the address on the bill.
A notification is sent to the taxpayer advising whether the terms of the installment agreement have been accepted or if they need to be modified.

The IRS generally may still file a Notice of Federal Tax Lien to secure the governmentâ€™s interest in the taxpayer's personal or real property until final payment is made. The notice filing could have a negative impact on the taxpayerâ€™s credit rating.

Enrolled Agent

Zhicheng Lai

I think you will win a free cruise

the only reason i can imagine for not being ABLE to pay fed taxes is that you need to tell your employer you need to fill out a new W-4 form. I had the same problem a few years ago.

the irs does not put people in jail for not paying their tax liability! this is utter nonsense!

likewise, nonpayment of taxes DOES NOT generate an audit! this is utterly absurd! p.s. most cpa's don't know how to settle an irs debt. go to a tax attorney.

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