What happens if you owe the IRS but can't pay?

-I work and file my income tax every year.now,I got a letter from the IRS stating I owe them taxes.First up the amount taken out. It needs to be about 10% of your before tax income. If needed start a savings acct to cover the extra amt if it's not enough. Then, if you still owe definitely call IRS and make a payment plan. They clean out bank accounts, levy your wages till you don't even have enough to live on if you don't make these arrangements.If you can't pay then visit IRS website www.irs.gov and download Form 433-F Collection Information Statement and complete the form, then on Tuesday call IRS at 1-800-829-0922 or 1-800-829-7650 to let them know you can't pay, they will ask you question about your financial situation. IRS will let you know if you can't pay, and will put your account in "currently not collectible status". IRS will take your refunds each year and will contact you again about your financial situation in a year. Interest and penalties continue to accrue until your account is full paid.

IRS will grant an installment agreement for as low as $25 per month for balances up to $1499.00; $50 for balances up to $2999.00 Interest and penalties continue to accrue until your account is full paid.



Good luck.
if you think the notice is incorrect, check your tax return or have someone check it for you for errors

it sounds like someone prepared it wrong

other than that, you can enter into an installment agreement with IRS and pay as you go
Just because you file does not mean you did I correctly. You must owe due to a mistake in the way you filed. The letter should have explained the reason.



Can't pay? Sounds like you need an extra job.
Sounds like you didn't pay ENOUGH for that year. If you can't pay it all at once, you can set up a payment plan.
get in touch with them as soon as you can. They will set up a payment schedule.
So? Is the letter a CP2000? If yes, what did it say you forgot to include in the tax return?
You figure out a way to pay it.
blackbagged
they need to tell you why you owe taxes. go to a local irs office for an explanation
you're screwed.