Most people go into panic mode when they realize they dont have enough money to pay the taxes they owe. The IRS offers fairly painless solutions and is making them easier to access.

Contrary to popular belief, the Internet Revenue Service is not particularly interested in making your life hell. Well, at least the service is not listing this as a goal. One area, however, where you can get into problems is not paying your taxes. Most people pay if they can, but what if you are a bit short in the bank account?

Most people that cannot meet their tax obligations go with the Ostrich approach. Essentially, they simply stick their head in the sand and hope for the best. This approach is the recipe for disaster because the IRS will eventually catch up with you. It may take a few years, but by then you will be in big trouble given the amount you owe will have increased with penalties and interest.

A better approach is to deal with the problem. As surprising as this may sound, the IRS has made a major effort to help such people instead of terrorizing them. The solution is a payment plan. Essentially, you fill out a form indicating what you owe, what you make and ask for a plan. The IRS then sends you a payment plan that typically pays off over a number of years. The payment plans are like credit cards, to wit, the balance goes down slowly if you make the minimum payment. As such, you want to pay the amount due off as soon as possible to avoid throwing away money on interest payments. While the payment plan isnt a great option, it does keep the IRS off your back.

If you owe back taxes or are having trouble meeting this years obligations, the IRS is moving to make payment plans easier to obtain. Simply put, the agency is going digital. The program is called the Online Payment Agreement. It is not currently active, but should be soon. The advantage of this digital application is it lets you apply without talking to the IRS. For most taxpayers, particularly those in arrears, this is a dream come true.

If you owe back taxes or are having problems now, a payment plan with the IRS is probably your best solution. Soon, the online payment agreement system will mean you dont even have to talk to an agent.