Do I have to pay my tax balance all at once?

Created by Shubha Bisht, Modified on Wed, 24 Jan 2024 at 05:05 PM by Shubha Bisht

The IRS can potentially assist you with payment plans if you’re unable to pay your taxes all at once. If you’re filing with Beem, you’ll need to select the pay with IRS.gov or IRS2Go app option to see the IRS payment plan options (and any such payments would then happen directly with the IRS, outside of Beem). If you choose the pay from a bank account method, it will require you to pay the entire balance. You can see more about the payment process within Beem here.

 

In many cases, the IRS can assist you with either payment plans, currently not collectible status, or offer in compromise (OIC) to assist you in paying your federal taxes. 

  • Payment Plans: There are several types of payment plans (e.g. installment agreements), depending on your specific situation. They range from simple, streamlined agreements that can be set up online, to more complicated agreements that require you to submit documents showing your financial status.

  • Currently not collectible status: If you can demonstrate a financial hardship, which means you are unable to pay the IRS at this time, the IRS will not demand payment until your situation has improved.

  • OIC: If you are eligible, this is a settlement of your outstanding taxes for less than what you owe. 

Note: if you submit your federal tax return by the filing deadline for the applicable year, you will avoid paying a penalty for filing late. However, there may be additional penalties for not paying by the filing deadline.

 

If you need to discuss options for paying your state taxes over time, check with your state tax office to see how they can work with you if you cannot pay the entire balance at the time of filing.

 

Additional Resources:

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.

 

Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by Beem and Beem is not responsible for, and has no control over, their content, privacy policies, or terms of ser

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