I owe the IRS and can't pay it all.
There is more than one way to resolve a tax debt, and the right one depends on your finances, your filing record and how much time the IRS has left to collect. Some options are rights. Most are decisions the IRS makes on the facts you present.
Or book a 30-minute call about your situation and what to do next.
Talk to us about your IRS problemThis first phase is a fixed fee, set before work begins. Nothing in it obligates you to the next phase.
Four ways a balance gets resolved.
They are not exclusive. Penalty relief, for example, often belongs alongside one of the others.
Pay over time
An installment agreement. Guaranteed by law only in a narrow case; otherwise the IRS decides whether to grant one and on what terms. While one is in effect, new levies stop.
Law · IRC §6159; §6331(k)(2)Settle for less
An offer in compromise, on doubt as to collectibility, doubt as to liability or effective tax administration. Acceptance is at the IRS's discretion.
Law · IRC §7122; Treas. Reg. §301.7122-1Remove penalties
Filing, payment and deposit penalties do not apply where the failure was due to reasonable cause and not willful neglect. The IRS separately waives some first-time penalties.
Law · IRC §6651(a); §6656(a) · First-time abatement: IRS practiceA temporary hardship delay
The IRS may place an account in “currently not collectible” status, suspending most collection. The debt is not forgiven, interest and penalties continue, refunds are applied to it, a lien may be filed, and collection may resume if your finances improve.
IRS practice · IRS guidance on temporarily delaying collectionThe collection clock.
Generally, the IRS must collect an assessed tax by levy or court proceeding within 10 years after the assessment. Each year's assessment has its own date, so different years expire at different times.Law · IRC §6502(a)(1)
That period is suspended in several situations, including while an offer in compromise is pending and while a timely Collection Due Process hearing is pending, so the date has to be calculated from the record, not assumed.Law · IRC §6331(k)(1), (3); §6330(e)(1)
Because the clock runs out at different times for different years, it can affect which option makes the most sense.Bridge's view · practitioner judgment
Filing comes first.
The IRS requires all required returns to be filed before it will consider an offer in compromise, and the law conditions the guaranteed installment agreement on a clean recent filing and payment record.IRS practice · IRS offer in compromise eligibility · Law · IRC §6159(c)
If years are unfiled, they are usually the first thing to address.Bridge's view · practitioner judgment
We take it from here.
- We take controlOnce you sign the authorization, we deal with the IRS for you. Send us any IRS letter you receive.
- Exactly where you standEvery year, balance, penalty and filing, taken from your IRS record rather than estimated.
- Your deadlines, risks and leverageIncluding how much time remains for the IRS to collect each year.
- Your Resolution RoadmapIn writing: where you stand, what happens if nothing is done, and which paths are open to you.