What if I Can’t Pay My Taxes on Time?
If your current situation precludes you from paying taxes on time, many people envision a judge sentencing them to weekends in prison, community service, or wage garnishment. They may ask experts, “What if I cant pay my taxes on time?” But do not panic if you owe back taxes to IRS. In response to your questions about “what if I cant pay my taxes on time”, there are temporary and permanent resolution and relief plans that can be enacted when you owe irs money. These include OIC, PA, CNC, PPIA, SIA, and a number of IAs. Owing back taxes is enough to worry about, but all of these acronyms seem more imposing than they actually are. An IA is an “Installment Agreement”, which is when a debtor pays a certain amount (determined by income) on their debt each month until the debt is paid off. An SIA is a “Streamline Installment Agreement”, which has a similar premise to the traditional installment agreement. The difference is that the taxpayer’s balance remains below $25,000, and they are able to repay the debt within five years. There are also Conditional Expense IAs, Stair Step IAs, and Partial Pay Installment Agreements (PPIA). Penalty Abatement (PA) is a policy that allows for annulment of some penalties if there is reasonable cause for not paying and diligence by the taxpayer. The other acronyms represent other options for paying off your debt over time without wage garnishment, and they are viable options for many. The short answer to “What if I cant pay my taxes on time” is that you have options! See more.