Tax season is over and all you can think about is how much tax debt is chasing after your name. Are you all out of options? Is it time to move overseas just to get away from it all? Relax—Xjust because you are behind on your tax payments does’¡¦t mean that you have made the F’I¡¦s most wanted list. The individuals who are eventually imprisoned by the government are rare examples of tax evasion. As long as you are honestly reporting all oour taxes, the most you have to worry about are penalty fees and building interest. That takes us to the first option.
1. Pay off your debt with an installment plan.

If you absolutely cannot afford to make a lump sum payment of everything you owe, then financing your tax debt relief may be the best option. This option requires that you owe less than $10,000 and that you can pay off the irs tax debt with 36 months. In order to make it easier on the IRS and yourself, try to make as large a down payment as possible. In addition to an installment plan there is also a long-term installment plan that can give you longer intervals between payment due dates.

2. Pay next year’¦s estimated tax in advance.
Based on how much money you made in the previous year, estimated tax allows you to make a payment quarterly so that you will not be left with a humongous lump sum next April. Quarterly tax payments are highly recommended for self-employed individuals and others who do not have their tax savings automatically withdrawn from each check.

3. Consult a tax professional.

Sometimes you really don’¦t know how much you owe or what tax concessions you can take advantage of until you talk to someone who knows a little something about taxes. Some business owners have discovered that they can save anywhere from hundreds to thousands of dollars by listig tax deductions. If you are unsure about whether or not you have filed taxes correctly, try letting an accountant do your taxes one year. If you do not save any substantial money then you have lost only a little. However, if there are significant savings then you definitely want to be aware of how these deductions work.

As long as you have a job and an honest conscience, you can escape legal problems with the IRS, even when you don’¦t have all the government money on hand.