We will not be able to pay all that we owe up front. What can we do?

We will owe money to the IRS this year. We used the installment agreement last year. My husband's payroll department made a mistake and wasn't taking out his state or federal taxes. We figure that we'll owe about $4,000 and will not be able to pay it all up front. What can we do?

This is a tough situation — one that makes us wonder about the payroll department at your husband's place of employment. But, that said, there are options here. The IRS is making an effort of late to be more helpful in assisting taxpayers.

The most important thing here is to make sure that you don't just "punt" and skip filing altogether. Trust us, this will get you into hot water. Make your problem known. The IRS web page is a good resource for two programs that the Service offers: the offer in compromise program and the installment payment process. In both cases, you can work things out so that you can pay your taxes over a reasonable period of time, or so that you can pay what you can afford.