What to Do If You Can’t Pay the Tax Bill Right Now

You opened the letter. You owe money. But what if you just… don’t have it? The good news is, the IRS knows many taxpayers can’t pay in full. The bad news? Waiting or ignoring won’t make the bill disappear.

Step 1: Don’t Panic—Acknowledge the Notice

Whether it’s a CP504 or Final Notice of Intent to Levy, you still have options. Ignoring it can lead to liens, levies, and frozen bank accounts.

Step 2: Review the Amount & Deadlines

Even if you disagree with the number, respond before the deadline. You can dispute amounts or request a payment arrangement after initial acknowledgment.

Step 3: Consider These IRS Resolution Options

• Installment Agreement – Break the bill into monthly payments

• Currently Not Collectible Status – Pause collections if you’re in true hardship

• Offer in Compromise (OIC) – Settle for less (if you qualify)

• Penalty Abatement – Reduce extra fees if you have “reasonable cause”

Step 4: Call in Support

Trying to DIY a tax resolution under stress isn’t just risky—it can cost you more in the long run. Tax professionals help you avoid critical missteps and keep your cash flow in mind.

Final Thoughts

You’re not a bad business owner for falling behind. Life happens. The IRS offers tools—but you need to know how and when to use them.

Call to Action

Need help sorting through your options? Schedule a tax resolution strategy session.