Introduction
Dealing with the IRS can feel intimidating, but the agency offers a surprising number of programs and resources to help taxpayers who are struggling. Whether you owe back taxes, cannot afford to pay your tax bill, or are facing an audit, there are formal processes available to request relief, payment arrangements, or assistance. This guide walks you through your options.
First Step: Understand What You Owe
Before contacting the IRS, get a clear picture of your situation. You can view your tax account information — including balances, payment history, and notices — at irs.gov/account. Create or log in to your IRS online account to see exactly what you owe and for which tax years.
Option 1: Payment Plan (Installment Agreement)
If you cannot pay your full tax bill at once, you can request a payment plan to pay over time. The IRS offers two main types:
Short-Term Payment Plan
Available if you owe less than $100,000 in combined tax, penalties, and interest. Gives you up to 180 days to pay in full. No setup fee.
Long-Term Payment Plan
Available if you owe less than $50,000. Allows monthly payments over several years. Setup fees apply ($31 online, $107 by phone or mail) but are waived for low-income taxpayers.
You can apply for a payment plan online at irs.gov/paymentplan, by phone at 1-800-829-1040, or by mailing Form 9465.
Option 2: Offer in Compromise
An Offer in Compromise (OIC) allows you to settle your tax debt for less than the full amount you owe. The IRS considers your ability to pay, income, expenses, and asset equity. To qualify you must:
- Have filed all required tax returns
- Have made all required estimated tax payments
- Not be in an open bankruptcy proceeding
- Demonstrate that paying the full amount would cause financial hardship
Use the IRS Offer in Compromise Pre-Qualifier tool at irs.gov to see if you may be eligible before applying. The application fee is $205 (waived for low-income applicants).
Option 3: Currently Not Collectible Status
If you cannot afford to pay anything toward your tax debt and covering basic living expenses is already a struggle, you may qualify for Currently Not Collectible (CNC) status. The IRS temporarily suspends collection activity — including levies and garnishments — while you are in CNC status. Interest and penalties continue to accrue, but the IRS will not actively try to collect.
To request CNC status, call the IRS at 1-800-829-1040 and explain your financial situation.
Option 4: Penalty Abatement
The IRS may reduce or remove penalties if you have a reasonable cause for failing to file or pay on time — such as a serious illness, natural disaster, or death in the family. You may also qualify for First Time Penalty Abatement if you have a clean compliance history for the prior three years.
To request penalty abatement, call the IRS, write a letter, or file Form 843.
Option 5: Innocent Spouse Relief
If you filed a joint tax return with a spouse or former spouse who underreported income or claimed false deductions without your knowledge, you may qualify for Innocent Spouse Relief. This can relieve you of responsibility for taxes, interest, and penalties attributable to your spouse’s errors. File Form 8857 to request this relief.
Free IRS Help Resources
- Taxpayer Advocate Service (TAS) — an independent organization within the IRS that helps taxpayers resolve problems. Call 1-877-777-4778 or visit taxpayeradvocate.irs.gov
- Volunteer Income Tax Assistance (VITA) — free tax preparation help for people who generally make $67,000 or less
- Low Income Taxpayer Clinics (LITCs) — provide free or low-cost legal representation for taxpayers in disputes with the IRS
- IRS Taxpayer Assistance Centers — in-person help at IRS offices nationwide, by appointment
What to Do if You Receive an IRS Notice
Do not ignore IRS notices. Each notice has a specific number in the top right corner — look it up at irs.gov/notices to understand exactly what it means and what action is required. Respond by the deadline stated in the notice. If you disagree with the IRS’s position, you have the right to appeal.
Should I Hire a Tax Professional?
For complex situations — significant back taxes, audits, Offers in Compromise, or tax court proceedings — hiring a tax professional is strongly advisable. Look for a CPA, enrolled agent (EA), or tax attorney. Be cautious of “tax relief” companies that charge large upfront fees and make unrealistic promises.
The information on LegalConsultants.com is provided for general informational purposes only and does not constitute legal advice or tax advice. Always consult a qualified tax professional or attorney for advice specific to your situation.