The IRS can help you if you’re having trouble paying all the taxes you owe at once – but you must take action. Here’s what you need to do:
- First, before the tax deadline, either file your tax return or get an automatic extension of time to file your tax return. (The deadline is mid-April for most taxpayers, but there can be different deadlines for taxpayers living abroad or people affected by disasters.) Filing an extension usually gives you until mid-October to file your return, and will help you avoid the failure-to-file penalty. Just remember, this extension to file is not an extension to pay taxes you owe.
- Next, you should pay what you can before the tax deadline. That’s because you’ll be charged interest and a failure-to-file penalty on whatever is left. So you want the amount you owe to be as small as possible.
- Then, check out the different payment options the IRS offers, such as an installment agreement or an offer in compromise. Go to IRS.gov/payments for more details.