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How to Pay Back Taxes to the IRS Even if You're Broke

Bad things do happen to good people. But that doesn't mean you can ignore them and hope they'll go away. Your IRS problems will only get worse. IRS problems can result from a number of causes including not having the money when back taxes are due, underreporting income, overstating expenses, or bad advice from a self-styled "expert" who is not a back tax attorney or Certified Tax Resolution Specialist. If you owe back taxes, you have a lot of company. One in six Americans (26 million people) has a tax problem.

The Internal Revenue Service is unlike any other creditor. If you owe back taxes and don't have the back tax help of a back tax attorney or Certified Tax Resolution Specialist, they will cheerfully financially cripple you with their unflagging aggressiveness, and seize your wages, bank accounts, property, etc. You must deal with them. They won't go away.

How to Pay Back Taxes to the IRS Even if You're Broke Insider Tip #1: "Man Up" to Your IRS Problems. Ignoring the IRS's phone calls and letters is a big mistake. If you think you are in bad shape now, it will be exponentially worse when the penalties and interest pile up. Your IRS problems won't go away on their own – they will only get worse with time.

The worst thing to do is avoid tax obligations. I would rather owe my mother-in-law than land on the wrong side of the IRS. Having tax debt means you are going up against the most aggressive and brutal collection agency on the planet. The IRS has the broadest latitude of any creditor to pursue a delinquent taxpayer for tax debt owed, including wage and asset garnishments.

Even if you don't have the money to pay on time, there are ways to get tax help today to avoid financially crippling liens and levies in the future.

How to Pay Back Taxes to the IRS Even if You're Broke Insider Tip #2: Don't Pay IRS Penalties. Since penalties can be a high percentage of the total amount owed to the IRS, it usually makes sense to consider requesting the IRS to reduce all penalties to zero before you pay the IRS. This is where an experienced tax attorney or Certified Tax Resolution Specialist can help ensure you don't pay a penny more than you absolutely have to. The IRS has 148 types of penalties. They also charge interest, and even interest on penalties!

If you've already paid your interest and penalty-laden tax bill, it can't hurt to ask for a penalty abatement and refund. It is your back tax attorney or Certified Tax Resolution Specialist's job to consider your unique situation and give you the best possible tax help. Once your tax attorney or tax relief firm has negotiated away the penalties, they might negotiate a payment plan, an Offer in Compromise, or get you put on the IRS's "currently not collectible" list

How to Pay Back Taxes to the IRS Even if You're Broke Insider Tip #3: File All Returns on Time. This is the first and greatest commandment of dealing with the IRS. If you don't follow it, they will automatically assess you up to a 25 percent penalty. You cannot ignore them, they will find you and make you pay dearly.

The act of not filing usually contributes to more significant problems with the passing of time. If you have unfiled tax returns, it's important that you file your latest tax return, as well as any prior delinquent unfiled tax returns, as soon as possible to give yourself a chance to state what you truly owe, which will ultimately save you money and help you avoid significant long-term consequences.

How to Pay Back Taxes to the IRS Even if You're Broke Insider Tip #4: Pay the IRS First. We get why you aren't leaping with joy at the prospect of forking over what little money you have to Uncle Sam. Many Americans aren't getting a refund this year, or owe taxes they can't pay. Don't let this ruin your financial future.

You should always pay the IRS before anyone else. They have the power to levy your wages, accounts receivable and all other sources of income until they collect what they're owed. Once the IRS has you in their sights, they will hound you with tax liens, wage garnishments and bank levies until your back taxes, penalties and interest are paid in full. Because they are the only creditor on the planet who is able to threaten you with such intrusive collection tactics, it's important that you take prompt action by contacting a back tax attorney or Certified Tax Resolution Specialist to delay or halt them so you can preserve your assets, savings, wages, credit rating, career and sanity.

How to Pay Back Taxes to the IRS Even if You're Broke Insider Tip #5: Consider Paying with a Credit Card. It's much more expensive to owe taxes to IRS than to a credit card company. Paying your taxes with your credit card will cost you a lot less in the long run, even if the card has a 29 percent finance charge, because your back tax bill could easily double in five or six years if you don't pay the IRS. Suck it up and pay. In fact, I would rather owe my mother-in-law than land on the wrong side of the IRS. The IRS will never stop hounding you with financially crippling liens and levies.

And just think, once you're back in the black, you'll have thousands of air miles on your credit card you can cash in to take a vacation some place where they've never heard of the IRS.

How to Pay Back Taxes to the IRS Even if You're Broke Insider Tip #6: Don't Take on Goliath by Yourself. People who try to solve IRS problems by themselves (or with a CPA or attorney who is not a specialist) often land themselves in even deeper trouble than when they started.

Would you hire a bicycle mechanic to work on your BMW? A qualified tax attorneys and Certified Tax Resolution Specialist with years of experience working with IRS will know best how to successfully resolve your back taxes and IRS problems. They know which Offers in Compromise settlements the IRS has accepted lately, which terms of payment they've signed off on, what deals they're likely to consider. They know the rules inside and out, sometimes better than the IRS itself! A tax attorney or Certified Tax Resolution Specialist will spot and stop the lies and tricks that agents sometimes use to try and cheat taxpayers who need vital relief from back taxes.

Once you have faced up to your responsibilities and paid the IRS, you can sleep through the night without IRS stress, and get a fresh start so you can plan your future and enjoy life again.

For more information on achieving a tax resolution for your IRS problems, visit for a free tax relief consultation or call 888-851-5894.

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About the Author

Michael Rozbruch is one of the nation's leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.