EP35 - IRS Payment Plans Explained: What to Do When You Can't Pay Your Taxes

Opening your tax bill and realizing you can't pay the full amount is terrifying. Your mind immediately jumps to worst-case scenarios: wage garnishments, liens, losing your passport. But here's what most people don't know: the IRS has multiple payment solutions designed specifically for this situation, and some of them are completely free if you act quickly.

In this episode, CPAs Anastasia and Myiesha walk through every IRS payment option from best to worst, so you know exactly what to do when you owe more than you can pay. You'll learn why filing your return is still critical even without payment, how to get a free six-month extension by making one phone call, the difference between short-term and long-term installment plans, when the IRS will accept less than you owe through an Offer in Compromise, and how to use penalty abatement to knock thousands off your bill. Whether you owe \$2,000 or \$50,000, this episode gives you the roadmap to handle it strategically and avoid the IRS's harshest collection actions.

If you're facing a tax bill you can't afford, or if you've been avoiding filing because you know you owe, this episode shows you the pathway forward—no judgment, just practical solutions.

⏱️ Timestamps:

00:00 Introduction to IRS Payment Solutions

00:33 Meet Your Hosts: Maisha and Anastasia

00:52 Understanding Tax Liabilities and Filing

07:34 Options for Managing Tax Payments

10:49 Setting Up IRS Installment Plans

13:39 Understanding IRS Payment Plans

14:14 Calculating Monthly Payments

15:08 Offer in Compromise Explained

17:36 Penalty Abatement and Other Strategies

18:06 Saving for Taxes Effectively

21:19 Importance of Filing Returns

22:00 Seeking Professional Help

24:33 Final Thoughts and Encouragement

Why subscribe? Every week, Let's Get Fiscal shares tax strategies and business finance advice that actually work for real entrepreneurs—not corporate-speak you can't use. You'll get specific, actionable tactics, real client scenarios, and answers to the money questions keeping you up at night. The goal is simple: make business finances less intimidating and more profitable.

🔗 Listen everywhere:

Apple Podcasts: [https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448](https://podcasts.apple.com/us/podcast/lets-get-fiscal/id1831050448)

Spotify: [https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11](https://open.spotify.com/show/08AjRNfqQJBdG1vPazii4Q?si=fb0379d3bef94f11)

Watch on YouTube: [https://www.youtube.com/@letsgetfiscalpodcast](https://www.youtube.com/@letsgetfiscalpodcast)

📊 Helpful resources:

Got a question for the show? Submit it here: [https://www.coterietax.com/qa](https://www.coterietax.com/qa)

Want to listen to more episodes? Start here: [https://www.coterietax.com/podcast](https://www.coterietax.com/podcast)

Need personalized help with your business finances? Visit: [https://www.coterietax.com](https://www.coterietax.com)

What's your biggest tax or money question right now? Drop it in the comments below—Anastasia and Myiesha read every comment and love helping with real-world situations.

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