What to do if you can't pay your taxes
What to do when you can’t
pay your taxes
Tax tips from Oregon State Credit Union
If your tax bill is larger than you can pay comfortably, and you are uncomfortable applying to the IRS for a payment plan, you still have options.
Options for paying taxes when you’re short on cash
You could put it on a credit card if the interest you will pay on the card is less than the interest and penalties you would owe the IRS.
The same holds true for a loan; if the interest you will pay is less than penalties and interest assessed by the IRS, the loan may be a better option.
Critical: take action
Whatever choice you make, the most important thing is to take action.
Failing to deal with your tax bill will cause a problem that can grow exponentially worse over time. Penalties and interest for failing to file on time and failing to pay on time begin to accrue the day after tax filing deadline, and they add up fast.
By paying as much as you can – even if it is not the entire bill – you reduce the amount on which the interest is applied and limit the damage to your budget.