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.
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If you’ve received a notice from the IRS or realized you owe back taxes, you're not alone—and you’re not out of options. Every year, millions of Americans find themselves behind on their taxes for a variety of reasons, from financial hardship to simple oversight.
Whether the IRS has contacted you or you’ve discovered the debt on your own, the most important thing is to act quickly. The longer you wait, the more interest, penalties, and stress you accumulate. This guide will walk you through 10 critical steps to take now if you owe back taxes, and how to minimize damage to your finances and peace of mind.
Editor’s Note: This post was originally published in October 2019 and has been updated for accuracy and comprehensiveness.
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