Settle
Settling a tax debt you can't pay at once
Owing the IRS more than you have is common, and there's a set of ways out of it. Which one fits depends on what you earn, what you own and what you need to live on, so the work starts with an honest budget.
From there we ask for the arrangement the numbers support, and we stop what's hurting most first: a levy on your pay or your bank account.
The options
Ways a tax debt gets resolved
Most people end up using one or two of these.
A payment plan
Monthly payments over time. For smaller balances it can be set up quickly; for larger ones the IRS will want to see your finances first.
An offer in compromise
Paying less than the full amount, when what you could ever pay is clearly smaller than the debt. It takes careful paperwork and patience.
A pause in collection
If paying anything would leave you unable to cover basic living costs, the IRS can mark the account as not collectible for now.
Penalty relief
Penalties can be taken off for a first-time problem, or for a good reason such as illness, a disaster or bad advice. Interest on them goes too.
Liens and levies
Getting a levy released, and a lien released, withdrawn or moved aside so you can sell or refinance a home.
Unfiled returns
Bringing missing years up to date, which is nearly always the first step before any of the above.
Tax debt questions
Can you get my tax debt reduced?
Sometimes. Penalties often can be; the tax itself is reduced only through an offer in compromise, and only when the numbers show you can't pay it. I'll tell you honestly which is likely after we've looked at them.
Will the IRS stop collecting while we work on this?
Many collection actions pause while a payment plan or an offer is being considered. A levy already in place may need its own request to release.
Does a payment plan stop interest?
No. Interest keeps running until the balance is paid, which is one reason to pay it off faster when you can.
What about my state tax debt?
State tax agencies have their own plans and offers. Tell me about any state notices too, and we'll work out how the two fit together.
Owe more than you can pay?
Bring your latest notice and a rough idea of your monthly costs. We'll work out the options from there.
Please don't send tax documents, Social Security numbers or account numbers through this site.