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Sometimes it happens by accident. You didn’t withhold enough from your paycheck during the year and find you owe the IRS money when it’s time to file your tax return. Or maybe you came into some money, spent it, and didn’t realize you needed to pay taxes on your windfall.

If your tax debt has been piling up, it can easily become an overwhelming and stressful matter. You might feel hopeless, not knowing what you should do or how you will resolve the situation. But the worst thing to do is nothing at all. The penalties and interest keep accumulating, putting you further into debt.

The IRS takes outstanding taxes very seriously. They will use all legal methods to collect the money owed to them. They can seize your assets, freeze your bank account, garnish your wages, and even restrict your passport. They can file levies and liens on your property. Hopefully, this hasn’t happened to you yet, but it can and will if you fail to act fast enough.

What is the Best Tax Resolution Option for You?

When you owe the IRS but are unable to pay, there are several options available to you. Remember that one of the most important things you need to do is to begin paying your current taxes. You must be up-to-date with filing your income tax returns and paying your current taxes before most of these solutions are available.

Here are some options available to you if you owe the IRS money. Whether these apply to you depends on your particular circumstances.

Installment plan

This is where you work out an arrangement with the IRS to pay your tax debt over time. There are several types of installment agreements, including regular, partial-pay,  streamlined, and non-streamlined. The determination of which one to use is dependent upon your current financial situation and the amount you owe.

Offer in compromise

An offer in compromise is where the IRS agrees to settle your tax debt for less than what you owe. The IRS is not required to accept your Offer, but if the Offer is presented so that it follows IRS guidelines, it increases your chance the IRS will accept the Offer to resolve your outstanding balance.

Not all tax professionals have the knowledge and experience to prepare an Offer that has a good chance of being approved. So it’s essential to find a tax resolution specialist with an excellent track record of getting Offers accepted by the IRS.

Currently Not Collectible

This status allows you to defer your tax debt. The debt does not go away; you still owe the IRS money. But if you are granted this status, the IRS will not pursue collection actions such as levying your bank accounts or garnishing your wages. This often happens when you don’t have enough income to cover your living expenses. If your income rises, the IRS will re-evaluate your situation.


Bankruptcy can be extremely useful to stop IRS collection efforts, potentially discharge income taxes that are old enough, and force repayment plans on an otherwise unwilling IRS. Tax penalties may also be discharged through the bankruptcy. As this is such a complex matter, it’s best to consult with a tax resolution professional and an attorney who is an expert in bankruptcy issues.

Getting Help When You Owe the IRS Money

A tax resolution professional can help you:

  • Respond to any IRS correspondence you receive
  • Contact the IRS on your behalf so that you won’t have to deal with them directly
  • Present your case before the IRS
  • Get you caught up on filing back tax returns
  • Understand the IRS Collections process and your rights
  • Negotiate a reduction in penalties
  • Work out a payment plan when you owe the IRS money
  • Get levies and liens removed

Resolve Your IRS Debt

If you owe the IRS money, you should act quickly to get expert representation before the IRS takes collection action. In addition to the resolution options discussed above, we can provide you with other options. So, if you’re ready to end your tax problems, call our Boca Raton office today at 561-826-9303 to schedule a consultation. We help individual and business taxpayers throughout Florida.

Contact Us 

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.