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What to do if you Cannot Afford Your Taxes

by taxnick on September 20, 2008

If the tax is a sales tax, excise tax, or license/permit – you may have to do without. If you are not able to afford it, you don’t get the enjoyment of it.

Other taxes, primarily income tax, can be paid over time if you are unable to pay for it. You will be required to provide financial information about all the property that you own and establish that you are truly unable to pay the tax – even if you liquidated (turned property into cash) all of the property which you owe.

If the government agrees, you can get a payment schedule – the tax is paid over a period of time. Just like a credit card, the amount due will be increased by interest on the “loan,”. There is no free ride with respect to tax payments.
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{ 1 comment… read it below or add one }

Joe Mastriano, CPA March 8, 2010 at 1:35 pm

There’s a lot of options when owing the IRS. For more complete information on setting up payment plans and on how to solve your own IRS problems please see the “free advice” tab.

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