Assuming that the balance owing is accurate (sometimes they are not) you need to address the likelihood you will probably have a tax payment as part of your current family budget. Grab IRS Form 433-A from the IRS web site (irs.gov) and fill in the financial information so that you can get an estimate of your financial position and ability to make a monthly tax payment.
You may look at a number of options to pay. Terms of payment may extend for as long as 84 months for the IRS and states vary, but typical payment periods are 12-18 months.
Stay in contact with the IRS or state through the duration of your payment plan. Occasionally you may get a call where a state or IRS has come in and taken cash or property or set-up a garnishment on the person’s wages. The IRS has no interest in taking your belongings. In fact, this is a last resort option. The IRS will only start to take items or property when all other methods of payment have failed and there has been a break down in the relationship between the taxpayer and the IRS representative. One other matter-owing taxes is not a crime. You are not going to jail.
