How to Get Help With Back Taxes

What to do if you owe back taxes

If you owe back taxes, your first step is to file any missing tax returns and confirm the total amount you owe through your IRS account. Owing back taxes can feel overwhelming, but taking the right first steps can help you avoid additional penalties and regain control of the situation. Before applying for relief programs or hiring professional help, focus on getting organized and understanding where you stand with the IRS.

1. File missing returns: If you haven’t filed one or more tax returns, make this your top priority. The IRS generally won’t approve payment plans or other relief options until all required returns are filed. Filing also helps you determine the exact amount you owe.
2. Review IRS notices: Carefully read any letters or notices you’ve received from the IRS. These documents explain how much you owe, deadlines for responding and any penalties or interest that have been added.
3. Log in to your IRS Online Account: Create or access your IRS Online Account to view your balance, payment history and tax records. This tool can help you confirm the amount owed and monitor your account in real time.
4. Avoid ignoring notices: Ignoring IRS correspondence can lead to more serious collection actions, such as wage garnishment or liens. Even if you can’t pay right away, responding promptly shows good faith and may keep the situation from escalating.
5. Evaluate payment options: Once you understand how much you owe, review your payment options. You may qualify for a short-term extension, long-term installment agreement or other relief program based on your financial situation.

» MORE: Who pays back taxes in a divorce?

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

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.

Avoid companies that promise instant debt relief or guaranteed results.

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.

How long does it take to get help with back taxes?

The timeline for resolving back taxes depends on the option you choose, how quickly you submit required documents and the complexity of your case. Some solutions can be set up in days, while others may take months for the IRS to review and approve.

• Payment plans: Short-term and long-term installment agreements can often be approved within a few days if you apply online and meet eligibility requirements. More complex cases or larger balances may take several weeks.
• Offer in compromise: An offer in compromise typically takes several months to review. The IRS will evaluate your income, expenses, assets and overall ability to pay before making a decision.
• Currently not collectible status: If you request delayed collection due to financial hardship, the review process may take a few weeks to a few months, depending on how quickly you provide financial documentation.
• Penalty abatement: Simple first-time penalty abatement requests may be processed relatively quickly, while reasonable cause requests that require documentation can take longer.
• Professional assistance: Hiring a tax attorney, CPA or tax relief company can speed up organization and communication, but the overall timeline still depends on IRS processing times.

Responding promptly to IRS notices and submitting complete, accurate paperwork can significantly reduce delays.

IRS help vs. professional help vs. DIY

• If you owe $10,000 or less: Consider setting up an IRS payment plan online yourself. This is often the fastest and cheapest option if your finances are straightforward.
• If you lost your job or can’t afford payments right now: You may qualify for delayed collection or currently not collectible status to pause IRS enforcement while you recover financially.
• If you owe a large amount, like $50,000 or more: A tax professional may help you negotiate a lower settlement through an offer in compromise or structure a manageable repayment plan.
• If you made a mistake or missed filings: Start by filing your returns yourself, then decide if you need professional help based on complexity.
• If you’re facing wage garnishment or legal action: Contact the IRS immediately and consider hiring a tax attorney or enrolled agent to represent you. 

What happens if you don’t get help for back taxes?

If you ignore back taxes, the IRS can file a federal tax lien, garnish wages, levy bank accounts or seize property. The IRS has broad authority to collect unpaid tax debt, and penalties and interest will continue to grow until the balance is paid. If you don’t take action, the situation can escalate quickly.

• Federal tax liens: The IRS may file a federal tax lien, which is a public record that claims your property as security for the debt. A lien can damage your credit and make it harder to sell or refinance assets.
• Levies: A levy allows the IRS to legally seize property to satisfy your tax debt. This can include personal property, business assets or other valuables.
• Wage garnishment: The IRS can garnish your wages, meaning a portion of your paycheck is sent directly to the government until the debt is paid.
• Bank account seizure: The IRS may freeze and seize funds directly from your bank account after providing notice. Once funds are removed, they are applied to your outstanding balance.

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