What to do if you can’t pay the taxes you owe

NEW YORK — If you know or suspect you can’t pay the taxes you owe this tax season, you should still file a return with that information or file for an extension. That’s the top piece of advice that tax professionals want you to know.

“The IRS wants to work with you,” said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals. “But if you’re asking the IRS for some help, they have to know something about you. So the first thing is to have that return filed. The number one takeaway is that owing money is not a reason not to file.”

If you don’t file a return or ask for an extension, then interest and penalties begin to accrue immediately. Those costs are largely avoidable if you share the information about your circumstances with the IRS in a timely way. Filing a return without paying taxes owed in full is preferable to not filing.

To be clear, if you don’t pay all the taxes you owe by the April 15 filing deadline, interest will accrue even if you’ve been granted an extension to October, but that interest will be more manageable than fees that add up when you pay no taxes at all.

“The worst case scenario is that you don’t file and end up being liable for penalties later on,” said Emily DiVito, senior advisor for economic policy at the nonprofit Groundwork Collaborative and former U.S. Treasury advisor. “That’s not good for anyone. But there are opportunities to ask for extensions and to go on payment plans.”

Here’s what to know:

In addition to tacking on interest and penalties, the IRS can eventually garnish your wages, place a lien on your property, or even place a hold on your passport. But if you file for an extension, or if you file your return with your financial information, you can avoid these consequences. Even if you don’t have the money to pay what you owe in full by April 15, paying just a small part when you file.

Yes. Volunteer Income Tax Assistance (VITA) sites across the country are staffed with volunteers who will help you file a return or arrange for an extension for free. These volunteers can help you set up an installment payment plan of as many as 72 months to pay off any owed taxes. The IRS Direct File program is also free to use.

“While the question mark when you go to click the button to pay can be intimidating, we want to make sure that taxpayers get the money you’re owed, too,” said DiVito. “Most taxpayers — certainly most working taxpayers — get…