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If you’re facing tax debt and feeling overwhelmed, know that there are solutions available. The IRS offers several options to help you manage and resolve IRS tax debt. Let’s explore your choices:
If you’re able to pay your full balance, doing so will help you avoid additional interest and penalties. It’s the simplest way to clear your IRS tax debt.
If you can’t pay the full amount, paying what you can now is a good start. This will reduce the interest and penalties you might incur. After that, consider these options:
Pay Over Time Consider applying for a payment plan, also known as an installment agreement. This allows you to pay off your balance over time. Keep in mind, there may be fees associated with this option.
Apply online for a payment plan.
Offer in Compromise An Offer in Compromise allows you to settle your tax debt for less than you owe, previously called The Fresh Start Program. This option is available to those who qualify based on specific criteria.
Check your eligibility for an Offer in Compromise.
If your financial situation prevents you from making any payments, you can request the IRS to temporarily delay collection. This can provide some breathing room while you get back on your feet.
If you believe there’s an error on your tax bill, contact the IRS using the number on your notice or visit your local IRS office. Be sure to have your bill and any relevant documents ready to support your case. If the IRS finds that an error was made, they will adjust your account and send a revised bill if necessary.
If errors on a joint tax return were made by your spouse without your knowledge, you might qualify for spousal relief. This can help you avoid being held responsible for their mistakes.
Let the IRS know immediately if you’re in bankruptcy. This may temporarily halt collection efforts. Call the number on your bill or 800-973-0424 with your court location, bankruptcy date, chapter, and bankruptcy number.
If no action is taken, the IRS may initiate collection procedures. It’s important to address your tax debt promptly to avoid further complications.
To avoid future tax debt, ensure you pay taxes as you earn or receive income. You can do this through employer withholding or making estimated tax payments.
If you need assistance, there are several resources available:
The IRS will not call, text, or contact you via social media demanding immediate payment. They will always start with a letter, explaining your options to appeal or dispute what you owe. If you’re unsure about your tax status, check your account information on IRS.gov.
Be cautious of phone scams where criminals impersonate IRS employees. These scammers can be very convincing, so it’s essential to verify any IRS communications.
For trustworthy, personalized assistance to resolve IRS tax debt, reach out to Honest Accounting Group. We’re here to help you navigate these challenges with confidence and clarity.
