If you owe money to the IRS, the penalties and interest can become over half of what you owe in taxes. The IRS has three years to audit a company for owed taxes. If you own a business and owe payroll taxes, for instance, the amount owed can become overwhelming and as explained by Forbes, you cannot discharge payroll taxes in bankruptcy.
What options do you have when you owe taxes that you cannot pay upfront? There are two solutions that the IRS offers taxpayers. The solutions include an offer-in-compromise and a traditional installment agreement. Both options provide taxpayers with a means to pay taxes over time, but both have different benefits.