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Unforeseen events sometimes derail plans.
if thats you, you arent alone.
However, youll pay penalties and interest for any uncollected taxes, so this can add up quickly.
And if you havent already, file any back tax returns you might currently owe.
The IRS Online Payment Agreement helps you set up a monthly budget-friendly payment plan.
Many taxpayers can come up with that through a combination of expense-cutting and additional income, Micheletti said.
If you are eligible, you could see a dramatic reduction in what you will actually have to pay.
Use the IRSs Offer inCompromise Pre-Qualifier toolto see if you meet eligibility criteria.
The IRS can help you set up ashort-term or long-term payment plan.
And youll still have to pay monthly interest and late-payment penalties, he said.
Another important point: avoid turning to credit cards.
In contrast, the interest rate for mostIRS tax debtfor individuals is 8%.
A friend or family member might loan you the money, too, he said.
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