If you are unable to pay your taxes to the Internal Revenue Service (IRS) when you file your income tax return, then it is vital that you understand the IRS tax collection process. By working with the IRS, you can save yourself a lot of stress, frustration, and money.

Here are your options if you are unable to pay your federal income taxes when you file your tax return:

Filing Your Taxes Without Payment

Even if you are unable to pay your income taxes by the filing deadline, it is still very important to file your tax return with the IRS. If you do not file by the deadline, then you will be subjected to additional financial penalties by the IRS.

If you want to file your federal return electronically without making a payment, then you should select the option to e-file and mail a check for payment. When the IRS does not receive your check, they will send you a bill in the mail demanding that you make an immediate payment.

Paying Your Tax Bill

When you receive the bill for your taxes, you should pay it in full if it is at all possible. The IRS charges late fees, interest, and penalties at very high rates in order to encourage taxpayers to take care of their bills quickly. You have the option to pay your taxes online or to mail the IRS a check.

If you receive your tax bill and are still unable to pay, but you know that you can make payments each month towards the bill, then you can request an installment payment agreement from the IRS.

IRS Installment Payment Agreements

If you need to make payment arrangements with the IRS, then you are required to fill out IRS form 9465 and mail it to the IRS for approval. The IRS will charge you a hefty fee to set up an installment payment plan, and they will still charge you penalties and interest each month on the unpaid balance.

Financial Hardship Situations

Finally, if you are suffering from a serious financial hardship, you can request that your payment for the debt be deferred to a future date. In this scenario, the IRS will still charge you penalties and interest, but the deferment will stop all aggressive collection actions.

Additional Information

If you need additional information about IRS payment plans and deferred payments, you should speak with your income tax preparation professional like one from UniqueTAXx AND ACCOUNTING.