Folks who were given an extension on filing their 2011 tax returns recently had to finally turn everything in to the IRS. For anyone who still didn't pay everything, the Internal Revenue Service encourages people to "Get Right With Your Government"—this means filing any current or delinquent tax returns and paying taxes you owe, or at least arranging for a payment plan.
An IRS employee, Raphael Tulino, says "The IRS knows and understands that a lot of taxpayers are struggling to take care of their tax obligations, so do let the IRS know that you cannot fully pay when you make that good faith payment, the IRS will work with you."
In an effort to support struggling taxpayers, the IRS has a Fresh Start program that expands payment options. It's now easier to qualify for installment payment agreements and offers in compromise. The program allows payment plans of up to 72 months and the current interest rate on installment plans is three percent.
If you don't have much money or assets, you might qualify for a reduction with an Offer in Compromise. This allows you to settle tax debt for less than the full amount owed. The Fresh Start program has made qualifying for an OIC a bit more flexible.
The IRS encourages American taxpayers to "get right with your government" and file any delinquent tax returns and settle overdue income tax debts. If you continue to ignore filing and paying, penalties will continue to accumulate and your stress and anxiety will continue to build.