What to do if you owe back taxes to the IRS
Installment plans, offers in compromise, and the mistakes that make things worse.
The worst thing you can do with IRS debt is ignore it. Penalties and interest compound monthly, and the IRS has collection tools no other creditor has — wage garnishment, bank levies, and federal tax liens.
Your options: Installment Agreement — pay over up to 72 months (under $50K balance) with minimal documentation. Offer in Compromise — settle for less than you owe if you can prove you can't reasonably pay the full amount. Currently Not Collectible — pause collection if paying would create financial hardship.
Each option has eligibility tests, paperwork, and trade-offs. A licensed Enrolled Agent or tax attorney is worth their fee here — DIY mistakes can cost you a settlement you would have qualified for.
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