What Are My Options If I Can't Afford To Pay In Full?
If you find yourself facing a financial situation where you cannot afford to pay your full amount, there are still options available. One thing to consider is asking the creditor to accept a smaller partial payment and setting up a repayment plan for the remainder. Oftentimes creditors will be willing to negotiate and accept payments over time in lieu of not receiving the full balance due. If a repayment plan is put in place, it is important that payments are made on time and that any additional funds can be applied toward settling the debt faster. Asking for reduced payments from one's creditor might also enable late fees or interest costs associated with the debt to be waived or reduced. Of course, the best approach is always to keep up with bills as they become due so that future financial problems can be avoided.
If you are unable to negotiate with the creditor or IRS on your own, then you may want to consider seeking professional help from a tax attorney or firm that specializes in resolving tax debt. Those who provide these services can often help you develop a repayment plan and negotiate with creditors on your behalf. Additionally, they may be able to advise you of any IRS initiatives or programs that may help reduce your total amount owed.
No matter what course of action you choose, it is important to remember that the sooner you address your delinquent tax debt, the more options you will have available. The longer you wait, the greater the chances are that additional fees and penalties will accrue making repayment even more