What Happens When You Can't Pay Your Taxes?

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When it comes to taxes, you're supposed to pay them gradually throughout the year so that in April you either don't owe very much or are entitled to a refund of overpaid taxes.

But sometimes your life situation changes or an unusual one-time event takes place during the year and when you prepare your annual return, you get an ugly surprise - you owe hundreds or thousands of dollars that you not only didn't see coming, but that you simply don't have.

While this isn't a good situation to be in, it's not the end of the world - there are a number of ways to resolve it. Learn about your options in my Investopedia article, What Happens When You Can't Pay Your Taxes?