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Tax Resolution Strategy

Dealing With Back IRS Tax Debt

Dealing with back IRS tax debt can be a daunting task, but it is important to take action and address the issue as soon as possible. The Internal Revenue Service (IRS) is known for its strict enforcement of tax laws, and failure to pay taxes can result in penalties, interest, and even legal action. However, with the right approach and strategy, it is possible to successfully manage and resolve back tax debt.

Here are some steps for dealing with back IRS tax debt

1. Determine the amount owed: The first step is to determine how much you owe. You can obtain this information from your tax returns, IRS notices, or by calling the IRS directly. It is important to know the exact amount owed, as this will guide your next steps.

2. Communicate with the IRS: Communication is key when dealing with back IRS tax debt. If you receive a notice from the IRS regarding your tax debt, don’t ignore it. Contact the IRS and let them know that you are aware of your debt and that you are taking steps to resolve it.

3. File any missing tax returns: If you have any missing tax returns, it is important to file them as soon as possible. Failure to file tax returns can result in additional penalties and interest, which will only add to your debt.

4. Explore your options for resolving your debt: There are several options to resolve your back tax debt, these include:

  • Payment plan: You can request a payment plan or an installment agreement, which allows you to pay off the debt over time.
  • Offer in compromise: In some cases, you may be able to negotiate with the IRS to pay an amount less than what you owe with an offer in compromise
  • Currently not collectible: If you are unable to pay your tax debt due to financial hardship, you may be able to qualify for currently not collectible status, which temporarily suspends collection activity.
  • Innocent Spouse Relief: Allows you be to relieved of a joint tax liability if your spouse or ex-spouse failed to report income or improperly claimed tax deductions or credits.
  • Penalty Abatement: The IRS will remove penalties as part of their First-Time Abatement Program or when you have reasonable cause for failing to pay or file timely.
  • Bankruptcy: In some cases, bankruptcy may be an option for resolving tax debt.

5. Seek professional help: If you are unsure of how to proceed or feel overwhelmed by your tax debt, it may be helpful to seek the assistance of a tax professional. They can help you navigate the process and ensure that you are taking the appropriate steps to address your debt.

6. Take steps to avoid future tax problems: Once you have resolved your back IRS tax debt, it’s important to take steps to avoid future tax problems. This includes filing your tax returns on time, paying your taxes on time, and keeping accurate and complete tax records.

Don’t delay, take action now

Dealing with back IRS tax debt can be stressful, but it is important to take action and address the issue as soon as possible. By following these steps and seeking professional help if needed, you can work towards resolving your tax debt and avoid the severe consequences that can result from ignoring the problem. East Coast Tax Consulting Group is ready to help, call us at 561-826-9303.



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You deserve the best in IRS tax representation, tax preparation, and tax planning services. At East Coast Tax Consulting Group, you’ll work with a licensed CPA who will handle your case from beginning to end. We invite you to contact our team to schedule a free, confidential consultation.