The Little House on the Prairie star blamed her $360,0000 tax debt on her acting career, the economy and her divorce.
"Like so many people across the nation, the recession hit me hard. That, plus a divorce and a dearth of acting opportunities the last few years, created a perfect storm of financial difficulty for me," she said in a statement to ET.
The 51-year-old is taking measures to pay off the tax debt.
On June 4, Gilbert wrote on Twitter that she and her family are moving into their "own Little House in the Big Woods. I’m serious. It's a log house in the woods!"
She also has a payment plan with the IRS.
"I've set up an installment plan to fully pay off my debt and will continue to work as hard as I can to erase this debt and dig myself out of this hole," she continued in her statement. "I am absolutely positive that I can do it."
Gilbert's positive attitude comes through on Twitter as her most recent post is of a James M. Barrie quote: "Life is a long lesson in humility."