How to get help with back taxes

Understand IRS programs for back taxes

Filing back taxes is daunting, especially if you know you’re going to owe a lot of money. The good news is that several IRS programs exist to help you manage outstanding tax debts.

Offer in compromise (OIC)

If you can’t pay off your total tax debt, an offer in compromise (OIC) lets you settle your tax debt for less than you owe. When you file for an OIC, you can pick your payment preference — pay off your debt in a single lump sum or create a payment plan you can afford.

We suggest using this offer in compromise pre-qualifier tool to see if you’re eligible. In general, the following need to be true to qualify:

• You have filed all required tax returns and made all required estimated payments
• You aren't in an open bankruptcy proceeding
• You have a valid extension for a current year return (if applying for the current year)
• You are an employer and made tax deposits for the current and past two quarters before you apply

Delayed collection

You may be temporarily able to delay the IRS from collecting your tax debt (including stopping wage garnishment) while you work on improving your financial situation. Fill out a Collection Information Statement and submit proof of your financial status, including your monthly income, expenses and a list of your assets and liabilities.

Penalty abatement

The IRS sometimes waives penalties if you have a valid reason and meet the following requirements:

• Didn’t have any IRS penalties for three years before receiving the current IRS penalty
• Filed an extension request or have (paid or plan to pay) the amount due
• Already paid the penalty before requesting penalty abatement

Pay over time

If you need to spread out your back tax payments over time, apply for a short-term or long-term repayment plan. To qualify for a long-term repayment plan, you must owe less than $50,000 in combined tax, penalties and interest — and you must have filed all required returns before applying. To qualify for a short-term repayment plan, you must owe less than $100,000 in combined tax, penalties and interest. Short-term plans are 180 days or less.

If you owe back business taxes, you can apply for a long-term repayment plan if you owe $25,000 or less. There are various fees for pay over time plans, depending on the plan you choose:

• No additional fee for paying back taxes in full
• $22 setup fee for long-term plan with automatic withdrawals
• $69 setup fee for long-term plan with nondirect debit monthly payments

Note: These repayment plans don’t stop the IRS from assessing penalties and interest until your tax debt is repaid.

Explore tax relief options

Avoid companies that promise instant debt relief or guaranteed results.

If you don’t qualify for any IRS debt management options, consider working with a tax relief company to help you fill out forms and negotiate payments. Tax relief companies can serve as intermediaries between you and the IRS — navigating the complexities of filling out IRS documents such as an offer in compromise or penalty abatement request.

It’s important to choose a tax relief company that is reputable and has gotten results for their clients. Some tax relief companies charge high fees upfront (or monthly) and don’t actually help you much with the IRS.

DIY strategies for managing back taxes

If you don’t want to hire a professional to help you with back taxes — you may opt to manage it on your own. Here are a few ways to handle tax debts yourself:

• Apply for a payment plan: You can apply for an IRS payment plan online yourself. You’ll need to be up-to-date on your tax returns and owe less than $100,000 in total taxes, interest and penalties. You can set up automatic payments to pay down your debts — just remember, you’ll still pay interest and penalties until the debt is paid in full.
• Fill out an offer in compromise: This involves filling out several IRS forms and providing documentation of your income, expenses and financial assets. If you’re approved, you’ll need to pay off the agreed-upon amount to the IRS or set up a payment plan.

While it may seem like you’re saving money in the short term by handling IRS debt yourself, it can end up costing you more in the long run if you fill out forms incorrectly. It may make sense to hire a professional if you owe a lot of money to the IRS — and save yourself a huge tax bill in the future.

Legal help for back taxes

Many tax firms can help you with back taxes. Tax attorneys, CPAs and Enrolled Agents are licensed professionals who can find out which tax debt management plans you qualify for, help you fill out required forms and even represent you before the IRS during an audit.

Hiring a tax firm to represent you can make sense — and potentially save you huge amounts of money. However, most firms that specialize in tax relief are expensive, and the results are not guaranteed. It’s best to hire a licensed tax professional if you owe a large amount of tax debt that you can’t pay back immediately.

» MORE: Tax relief statistics 2025