It's nearly April 15th and you are panicked because you have completed your return only to find that you in fact owe taxes. The worst part is, you don't have the cash to pay them. Don't worry, you are in the same boat that many Americans are in every year.

First, you need to decide if you need an extension to file or if you are ready with your actual return. It is very important to note that filing an extension is only an extension on the return, NOT on paying your taxes. Your taxes are due April 15th regardless if you file an extension or not. If you aren't quite ready to submit your return, simply file a form 4868 which you can find at the IRS Website Form 4868.

If you are ready to file your return and are unable to pay your taxes due in full, the best course of action is to pay whatever amount you can now and file a an Online Payment Agreement (OPA). You will need the following information to begin:

* Balance due on return
* Taxpayer's SSN or TIN
* Spouses's SSN or TIN
* Adjusted Gross Income from last year's tax return
* Total tax from last year's tax return

The IRS will add an additional $105 to your balance for the use of an OPA. When determining your ability to pay a set monthly installment, make sure you are being reasonable. Don't overextend yourself because you are worried the IRS won't accept too low of a monthly payment or because you are worried you will be paying forever. While it is very important that you pay off your tax debt as quickly as you can afford to, it will only make matters worse if you agree to a payment amount that you won't be able to realistically maintain. The IRS is much less forgiving of missed installment payments.

If you are interested in beginning the process of setting up an Online Payment Agreement you can get started here: Online Payment Agreement.