BIRMINGHAM, AL (WBRC) - Tax experts say the worst thing you can do it is nothing.
If it turns you must pay the state or federal government, but you don’t have all the money you owe, both will work out something with you.
Annette Abrams with CJD Tax Professionals in Tuscaloosa, suggested filing anyway even if you owe back taxes. By doing that you avoid some penalties.
She said there are fees if you’re late filing or if you don’t file at all. You can contact the IRS or the state about setting up an installment plan where you can start making payments if you can’t pay the full amount all at once.
"I would suggest filing and then trying to apply for an installment plan and tell them exactly what you can afford to pay and pay that,” Abrams told WBRC.
If you’re experiencing a financial hardship that could affect how you pay towards that installment plan, that account could be placed in a not collectable status at that time. That must first be approved by the IRS.