5 Tips for Taxpayers Who Owe Money to the IRS

For those taxpayers who can’t pay their tax balance in full there are a few things that you can do on your own to deal with the IRS.

  1. Explore Payment Options - The IRS offers several ways for you to pay your bill, including online, by phone, and by mail
  2. Request Additional Time to Pay - Based on your circumstances, you may be granted additional time to pay your tax.  Additional time to pay can be requested by calling the IRS, using the phone number on your most recent IRS notice or letter.
  3. Check your withholding amounts - If you owe a large amount of tax, you may need to increase the amount of taxes being withheld from each paycheck you receive. Taxpayers who have a balance due year after year may want to consider changing their Form W-4, Employee’s Withholding.
  4. Check your Estimated Taxes - If you do not have taxes withheld from your income, you may need to make estimated tax payments. This may apply if you have income such as self-employment, interest, dividends or capital gains. It could also apply if you do not have enough taxes withheld from your wages. If you are required to pay estimated taxes during the year, you should make these payments to avoid a penalty.
  5. Stay Current with your tax filings -  Make an effort to file all required returns (even if you owe) and you also make an effort to remain current with estimated tax payments or withholding. 

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