Tax Filing Failure & Tax Debt Resolution

Last updated on April 12, 2022

The tax filing deadline is around the corner, so taxpayers who are looking to pay their taxes before midnight April 15^th should electronically pay their taxes. Taxpayers who cannot pay their taxes before the deadline and owe the IRS will need to either pay the full debt amount in a lump sum, or apply and qualify for an IRS debt payment plan.

After the tax filing deadline passes, and all refunds have been issued, the IRS’ job will shift from tax collection to debt collection. Receiving an IRS notice for tax debt is the indication that efforts to pay the tax debt must be made to avoid aggressive collection actions.

The IRS has numerous tax debt payment plans for all type of circumstances. Taxpayers must remember though, that the sooner they pay their taxes, the better because the IRS will continue to charge interest on a tax debt until it is paid in full. Instead of waiting for the IRS to send notices, it is better to initiate communication.

Taxpayers who cannot file on time will need to file for an extension of time and pay their taxes later. Taxpayers who do not have to pay because they cannot pay their entire tax liability should still pay what they can to stay in compliance. They can pay the remaining balance later under an IRS debt payment plan. The top priority for taxpayers should to be to stay compliant and explore their options.