When tax time comes around, inevitably there are people who are not able to pay everything they owe.

Although the IRS always prefers that you find a way to pay your taxes in full, circumstances can sometimes prevent that from happening. If you find yourself in this predicament, the IRS does have options available to help you resolve your tax debt.

Obviously, the best solution for past due taxes is to pay the entire debt as quickly as possible. Remember that penalties and interest will continue to accrue until your balance is fully paid – the IRS does not necessarily waive these late fees, even if you set up an approved payment arrangement.

In some cases, it is actually more affordable to pay your tax debt using a personal loan or credit card(s), which often charge lower fees than the IRS.

​Read on to learn the IRS payment options if you cannot pay your taxes.

Millions of people enjoy having hobbies — whether it’s photography, antiquing, craft making, collecting coins, or breeding horses. It usually costs money to support a hobby, but in some cases, your hobby can also make you money.

If you have a hobby that is also a source of income, you’re required to report the income on your Federal tax return. In order to properly report your income and expenses to the IRS, you must ascertain whether the activity is classified as a hobby or a business.
This article explains the IRS rules for determining if an activity qualifies as a business, and what restrictions apply if the activity is not a business.