Have a Tax Question? Ask a Tax Expert
Good evening. The IRS has two options if you cannot afford to pay your taxes all at once. One, if you can pay it off over a period of up to 60 months, you can work out an installment payment arrangement with them. Two, if the foregoing is not possible, the IRS has an Offer in Compromise program where the IRS will actually forgive substantially all or some portion of the tax, interest and penalties due depending on your assets and future ability to pay over the next 60 months. You can find a step by step process for the Offer in Compromise program in the IRS Offer in Compromise booklet...this booklet can be found at the following website: www.irs.gov/pub/irs-pdf/f656b.pdf
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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
So, you're pretty much saying you have to be broke in order for them to forgive all or partial of what i owe? I mean i owe $11,000. to Federal for 2009 Taxes.. And now for 2010 i owe $5,000 to Federal and $1,700. I can't see no way out but to pay it as i go.. I don't know where to start. But will check-out the Website you sent..
You don't have to be broke...especially to work out a payment plan over 60 months. The IRS will be willing to combine 2009 and 2010 and work out an installment arrangement. They are seeing a lot of people in these positions and these programs are designed to help the taxpayer out. And, if you have no history of this, you will be pleased I think with what you can work out.
I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.