Common paths for
IRS tax debt.
Your circumstances matter. These overviews explain common approaches; the IRS determines eligibility and approval.
Payment plans
A payment plan lets you pay your IRS balance over an agreed period. An installment agreement generally involves monthly payments.
It spreads payments out rather than automatically reducing the debt. Interest and applicable penalties generally continue until the balance is paid. Setup fees may apply.
Read IRS payment plan guidance ↗Offer in compromise
An offer in compromise may allow an eligible taxpayer to settle a tax debt for less than the full amount owed. The IRS considers factors such as income, expenses, assets, and ability to pay.
Approval is not automatic. Filing and payment requirements apply, and this quiz does not evaluate them or estimate a settlement amount.
Read IRS offer in compromise guidance ↗Currently not collectible status
If paying would prevent you from meeting basic living expenses, the IRS may temporarily delay collection after reviewing your financial circumstances. This is often called currently not collectible status.
The debt remains owed, and interest and penalties generally continue. The IRS may review your finances again, apply future refunds to your balance, or file a federal tax lien.
Read IRS collection delay guidance ↗General information only, not individualized tax or legal advice. You can explore these options directly with the IRS; hiring a private company is not required. State tax debt may follow different rules.