What if I can't afford to pay my taxes?
Can I set up a payment arrangement, or pay over time, if I owe the IRS more than I can afford to pay?
Best Answer
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Yes - but it will cost you extra money.
First, paying over time will accrue additional fees and penalties for not paying by the April deadline.
Second, many payment plan options have set-up fees (URL https://www.irs.gov/payments/payment-plans-installment-agreements#costs).
Short-term payment plans have no additional fees.
Long-term payment plans can cost as little as $31 or as high as $225.
However, low income (URL: https://www.irs.gov/payments/payment-plans-installment-agreements#low_income) taxpayers may qualify to have user fees waived.
The easiest way to apply is on the IRS website (URL: https://www.irs.gov/payments/online-payment-agreement-application)
Hope this helps make your options more clear!
Answers
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If you set up a payment plan, the IRS will hold any subsequent refunds you would normally receive until the balance is paid off. This can help you pay your balance off more quickly.
