[Editor's Note: This article was originally published in November 2011 but has been updated for accuracy and comprehensiveness in 2026.]
The IRS just made one of the most taxpayer-friendly changes in decades. Under the new Automatic Exemption from Penalty (AEP) program, the IRS will automatically waive certain failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers with a clean three-year compliance history, no phone call, no letter, no request required.
[Editor's Note: This article was originally published in November 2011 but has been updated for accuracy and comprehensiveness in 2026.]
If you owe back taxes and have been carrying that weight for years, maybe even a decade, you've probably asked yourself: Can the IRS collect forever? The short and encouraging answer is no. Federal law sets a clear deadline on how long the IRS can pursue you for unpaid taxes. But as with most things involving the IRS, the details matter enormously.
Realizing you owe taxes (especially right after Tax Day) can feel overwhelming. For many people, the instinct is to avoid the problem, wait until there’s more money available, or hope it won’t escalate quickly.
Unfortunately, the IRS doesn’t work that way.
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If you owe back taxes and can’t pay, file on time, pay what you can, stay current on this year's taxes and explore IRS options like installment agreements or an Offer in Compromise to avoid penalties and collection actions.
Every year, taxpayers face the same question: should you file your taxes as soon as possible, or is it smarter to wait until closer to the deadline? The short answer is that filing early is best for most people, but waiting can make sense if your income is complex, documents aren’t complete, or you need extra time to plan strategically. Ultimately, the key isn’t speed. It’s accuracy, timing, and managing risk.
[Editor's Note: This article was originally published in February 2014 but has been updated for accuracy and comprehensiveness.]
If your tax refund was lower than expected (or you ended up owing the IRS) you may not be withholding the right amount of federal tax from your paycheck. On the other hand, if your refund was unusually large, you could be having too much tax withheld, reducing your take-home pay throughout the year.
Owing taxes to the IRS can be stressful...especially when the balance is substantial and interest and penalties are adding up. Fortunately, the IRS offers options that make it easier for qualified taxpayers to manage or resolve tax debt without digging deeper into financial hardship.
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Audit representation is professional assistance provided by a tax expert to guide you through an IRS audit. Hiring an experienced representative can save time, reduce stress, and help you navigate complex tax laws to protect your finances.
[Editor's note: This article was originally published in July 2018 but has been updated for accuracy and comprehensiveness.]
If you owe the IRS $51,000 or more, unpaid taxes could put your ability to apply for or use a U.S. passport at risk. Thanks to the FAST Act (Fixing America’s Surface Transportation Act), the State Department can deny or revoke passports for taxpayers with seriously delinquent tax debt. Understanding how the FAST Act works—and how to resolve your tax debt—can help protect your passport and your ability to travel internationally.
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You can settle IRS debt by negotiating payment terms, applying for an Offer in Compromise, requesting Currently Not Collectible status, or setting up a payment plan, each with specific requirements and pros/cons.
Owing the IRS is stressful, but you have more options than you might think. Whether you owe a few thousand dollars or six figures, the IRS offers programs to help taxpayers resolve their debt in ways that fit their financial situation.
