Don’t Panic If You Can’t Pay Your Taxes

Crimes like tax evasion are very serious, but what if you just can’t afford to pay your taxes? The IRS recognizes that a simple inability to pay should not be treated the same way as a failure to file or a false return. There are procedures and programs in place to keep you and the IRS on agreeable terms if you don’t have the financial stability to pay the taxes you owe.

One of the most important things the IRS wants you to do in this situation is to file anyway. Even if you can’t pay the full amount owed, file anyway, do so on time, and pay what you can in order to avoid late charges or failure to file penalties (your account will still accrue interest until the full amount is paid).

Here’s What You Need to Know

Once you have filed on time, you might qualify for an extension. The IRS can make full payment agreements, where the taxpayer is given up to 120 days of additional time to pay the outstanding amount in full. Another possibility is to request an installment agreement. If you qualify, you’ll agree to pay a manageable monthly amount via direct debit, payroll deduction, EFTPS, credit card (via phone or internet), or check/money order. For more information on installment agreements, visit

If both of the above options will not do, you might consider proposing an offer in compromise, which is an agreement between the IRS and a taxpayer stating that if the taxpayer pays an agreed upon reduced amount, then the tax liability will be completely resolved. Still another option is a temporary delay. If paying even a portion would keep you from meeting your basic living expenses, the IRS may temporarily report your account as being currently not collectible until a time comes when you can afford to pay.

Get the Help You Need

Are you dealing with an investigation from the IRS? If so, your first task should be to find a local law firm that can help. Fortunately at the Law Offices of Robert J. DeGroot, our goal is to provide each and every one of our clients with a tenacious defense no matter what the charges are. It’s a scary situation to find yourself in, but you can count on us to bring nearly five decades of experience to the table in order to defend your rights. When a tenacious defense is what you need, look no further.

If you’re facing a tax fraud charge in the Newark area, contact the Law Offices of Robert J. DeGroot for trusted legal defense.