I Owe the IRS Tomorrow and I Can't Pay Them!

Tomorrow is April 15th. To every American that means your annual IRS 1040 form is due. A lot of people get refund checks, but not everyone. Some have a balance due and must write the check by tomorrow to avoid late payment fees and IRS enforced collection.

But what if you can't pay it? Then what?

First, request an Installment Agreement (a pay plan). You can actually attach this request to your tax return and send them in together. The IRS form is Form 9465. If you owe more than $25,000 in taxes, be prepared to make full financial disclosures to the IRS to determine how much you can pay.

Second, if you are in a temporary bind (you lost your job or your business went into the crapper recently), you can call the IRS at 1-800-829-1040 and request a Currently Not Collectible ("CNC") status. There is no form for this. Just request it over the phone and once again be prepared to disclose your monthly income/expenses to prove you can't make monthly payments.

Lastly, if you can't pay it and will probably never be able to pay it (including liquidating all your assets), then look into an Offer in Compromise (Form 656). Be careful though. These are very tricky cases. In most cases it's best to get the help of an experienced professional (an attorney, CPA, or EA that specializes in civil tax controversies).

Good luck!Attorney Jack Manhire is an 11-year veteran tax attorney who has helped individual, corporate, and government clients save over $127,000,000 in back IRS taxes. You can contact him by posting a comment on his blog at http://taxhelpirs.blogspot.com/.