Special Programs the IRS Offers When You Owe Money But Can’t Pay Right Away

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You’re behind on your taxes and eager to find a solution — but personal complications make it impossible to pay up right now.

What next? Thankfully, the IRS offers several programs to help you find relief. These include the following:

Currently Not Collectible Status

A top option for taxpayers suffering huge financial roadblocks, currently not collectible (CNC) status is typically granted based on personal hardship.

To qualify as a CNC taxpayer, you’ll need to demonstrate that you have little money left over after covering essential life expenses such as rent and utilities. From there, the IRS will provide relief from consequences such as wage garnishment. You’ll have extra time to get back on your feet without worrying about installments.

Tax Relief During Disasters

The IRS often provides targeted forms of relief to taxpayers who have been negatively impacted by natural disasters or other extraordinary circumstances. Relief may also be possible if your tax preparer is situated within the impacted region.

First-Time Penalty Abatement

If you rarely have issues with the IRS, you could be a candidate for the first-time penalty abatement. This waiver allows you to avoid extra fees if you fail to file or pay your tax bill on time.

Create an Installment Agreement

IRS installments might not seem like a viable option when money is tight and you’re juggling multiple forms of debt, but it may be possible to secure favorable terms that help you handle your tax obligation little by little. Keep in mind that setup fees for long-term payment plans are often waived on the basis of low income.

Don’t hesitate to seek support if you’re unable to cover your taxes. Our team at Highland Tax Group can guide you through your options. Get in touch today to learn more about opportunities for dealing with tax debt.