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Hello JA Customer,
Yes, you can try to set up a payment plan with the IRS to pay off these taxes, and then you would simply pay off that plan in full once you sell your home.
I would also suggest that you file for an extension to file your return. You can file for an extension which would give you an extra six months to pay the taxes due, as your filing deadline would be extended to October 15th instead of April 15th. You may even have your home sold by then and would not have to worry about trying to set up a payment plan.
An extension is filed on IRS form 4868.
Thank you JA Customer
Hello again JA Customer,
Yes, it is correct that when filing for an extension you should still try to pay in the taxes that you think you will owe. However, if you do not have the money to do that, all this will mean is that the amount you do owe will continue to accrue interest. But that would be the case even if you file now.
The only reason I am suggesting you file for an extension is that it gives you an extra 6 months time to see if your house sells, and then you would not have to fool with setting up a payment plan. You would of course pay any interest on the taxes owed between April 15th and the time you file, but that would be the case even on a payment plan. So I am just suggesting this as a mean of avoiding some extra steps here in setting up a payment plan if you don't need to.