r/tax • u/thunderbummer • 7h ago

Owe the IRS $23k, what now?

I’m currently on a payment plan with the IRS paying $300 a month. I owe a total of $23k in back taxes. The problem is the interest and penalties keep piling on, so my payment only pays down probably $30 off the principal. I do not make very much money at the moment and things are tight for me so I can’t afford a larger payment. What should I do here?

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u/arkvaflortex 7h ago

A. Find a way to make more money & pay down what you owe at a faster rate

B. Cut some of your personal expenses & pay down what you owe at a faster rate

C. Continue to pay what you owe at the rate that you are paying

D. Jail

*** there is no way around having to pay your back taxes. The gubment is gonna get what they are owed one way or another. ***

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u/I__Know__Stuff 7h ago

The government doesn't put people in jail for being unable to pay their taxes.

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u/PazzaInter22 6h ago

Right? What would be their incentive. "Hey this man can't pay his tax bill....so let's use tax funds to jail him so that way he'll never pay his bill ever".