Back Taxes: Compare Your Payment Options
Understand installment agreements, hardship review, and offers in compromise before paying for help.
Start With the Correct Balance
Separate your debts by agency and tax period. Confirm posted payments and any missing returns before choosing a repayment approach. IRS and California debts require separate attention.
Paying Over Time
An IRS installment agreement divides an accepted balance into payments. Short-term arrangements may also be available. Interest and applicable penalties generally continue. Check the IRS page for current eligibility, fees, and application routes.
When Basic Expenses Leave No Room
If financial hardship prevents payment, the IRS may classify an account as Currently Not Collectible and pause most collection. This does not cancel the debt. Interest and penalties continue, refunds can be applied to the balance, and the IRS may review your finances later.
Settling for Less
An offer in compromise is an application subject to IRS review, not a guaranteed discount. The IRS considers income, expenses, and asset equity. Required returns and current payments must be addressed; an open bankruptcy generally prevents eligibility. Review the official pre-qualifier and application instructions before committing to fees.
Build an Affordable Proposal
List income, essential expenses, cash, assets, and existing obligations. Keep bank statements, pay records, housing costs, insurance, and other financial evidence. Do not choose a monthly payment without checking whether you can also pay current taxes.
DIY and Professional Help
You may apply directly through the official IRS tools. Professional review can help with disputed balances, detailed financial disclosures, competing tax debts, or active collection. No provider can guarantee approval or a particular reduction.
Official Sources
IRS: Payment Plans and Installment Agreementswww.irs.govIRS: Temporarily Delay the Collection Processwww.irs.govIRS: Offer in Compromisewww.irs.govFTC: Trouble Paying Your Taxes?consumer.ftc.govGeneral education, not a case-specific tax or legal determination. Agency instructions and the deadlines on your own notice control. Keep sensitive records in your secure files.