What Should You Do if You Can’t Afford to Pay Back-Taxes?
Paying taxes is no fun. Owing back taxes and not being able to pay them is much worse. Many people get into tax trouble when they end up owing money to the IRS and they don’t have the means to pay it off. This can cause a lot of stress, anxiety and even fear or panic. However, you shouldn’t panic. The IRS won’t show up at your door with the police ready to take you away in handcuffs.
If you do end up owing back taxes and you can’t pay them off all at once, you have some options. That’s because the IRS is willing to work with you, so long as you are willing to work with them. The first thing you should do, is file your return on time, even if you know you don’t have the money to pay off your tax debt. This will help you avoid additional late-filing penalties.
Pay as much as you possibly can when you file your return. If you just need a little more time then you can file for a short-term extension in order to pay off the remaining debt within 120 days. If it is going to take longer, then apply for a monthly payment plan with the IRS. It’s best to set up an automatic monthly payment plan. There will likely still be interest and some penalties but they will be much lighter.
The IRS wants you to be able to pay your taxes and they are willing to work with you if you keep up your end of the agreement. You can learn more about paying off back taxes by clicking here.
The Great Estate & Gift Tax Showdown of 2026
1. Background Current Law (2025): As of 2025, the U.S. federal estate tax imposes a 40% tax on the value of estates and lifetime gifts exceeding a unified lifetime exemption of about $13.99 million per individual (double for a married couple using “portability”)[1]. This exemption – also applicable to the generation-skipping transfer (GST) tax –…
Redefining Wealth With Purpose
Brad Connors explains how wealth management, retirement planning, and purposeful living come together to help families align money with meaning.
Marc Henn on Building True Wealth: Beyond Portfolios and Toward Purpose
When Marc Henn launched Harvest Financial Advisors nearly two decades ago, he wasn’t trying to reinvent the financial-services wheel. He was trying to realign it. After more than 35 years in the industry, Henn had seen what he calls the “black marks” of the profession—transactional mindsets, one-off sales, and the steady erosion of authentic client…
Beyond the Exit: Alex Bean on Why True ROI Means Return on Impact
Beyond the Exit: Why Divvy’s Alex Bean Believes True ROI Means Return on Impact For most entrepreneurs, selling a billion-dollar company would be the final chapter—the ultimate validation of long nights and relentless ambition. For Alex Bean, co-founder of Divvy, that milestone became only the beginning of a deeper journey. In 2016, Bean and longtime friend Blake Murray launched…