If the amount you owe is causing a financial hardship or you have contacted the IRS and have not been able to resolve your tax issue, there are several options available to you:
- Taxpayer Advocate Service (TAS): The TAS is an independent organization within the IRS that helps taxpayers resolve problems with the IRS and protects taxpayers' rights. You may be eligible for help if your IRS problem is causing financial difficulty or you believe an IRS procedure isn't working as it should. TAS has offices in every state, the District of Columbia, and Puerto Rico. If you qualify for help, you will be assigned to one advocate who will assist you throughout the process. To speak to an advocate, call 877-777-4778 or contact your local TAS office.
- Low Income Taxpayer Clinics (LITC): LITCs can represent you before the IRS or in court on audits, appeals, tax collection matters, and other tax disputes. Services are provided for free or for a small fee. To qualify for assistance from an LITC, generally, a taxpayer’s income must be below a certain threshold, and the amount in dispute with the IRS is usually less than $50,000.
- Offer in Compromise (OIC): If you are unable to pay your taxes in full, you may qualify for an OIC, which allows you to settle your tax liabilities for less than the full amount owed. To apply, you need to complete Form 656, Offer in Compromise, and include the application fee and initial payment unless you qualify for a low-income exception. If your application is rejected, you may be eligible for other payment options.
- Installment Agreement: If you cannot pay the full amount you owe, you can request an installment agreement to pay your debt in smaller, periodic payments. The IRS offers streamlined installment agreements for small businesses with $25,000 or less in unpaid tax that can fully pay the balance due within 24 months.
- Requesting a Delay in Collection: If you cannot pay any of the amount due, you can request that the IRS delay collection until you are able to pay. This may involve completing a Collection Information Statement and providing proof of your financial status.
- Appeal the Collection Decision: If you disagree with the IRS's collection decision, you can appeal. For appeal consideration of liens, levies, seizures, installment agreements, or Offers in Compromise, refer to Publication 1660, Collection Appeal Rights.
- Fresh Start Initiative: The IRS has made the streamlined Installment Agreement process available to more small businesses and increased the dollar thresholds for when Notices of Federal Tax Liens are generally filed. This initiative also makes it easier for taxpayers to obtain lien withdrawals once full payment of taxes is made.
For more detailed information and assistance, you can visit the IRS website or contact the IRS directly.
Sources:
Publication 1518 (11/2012)
Publication 3498-A (05/2021)
Publication 3402 (3/2020)
Publication 1715
Publication 1582
