Which IRS Tax Relief Option Fits You?

How This Guide Works

The IRS has a short list of ways to resolve a tax debt, and which one fits depends on a few facts: how much you owe, whether your returns are filed, what you can pay each month, and what you own. The questions above cover those facts. The guide does not store your answers or send them anywhere.

Two rules shape every result. First, the IRS will not approve a payment plan or an offer until all required returns are filed. Second, if a garnishment or levy has started, time matters more than anything else, because some protections depend on acting within 30 days of a notice.

The Main IRS Relief Options

• Short-term payment plan: pay in full within 180 days, available online when you owe less than $100,000, with no setup fee.
• Installment agreement: monthly payments. Balances of $50,000 or less qualify for the Simple Payment Plan; larger balances need more review.
• Offer in compromise: a settlement for less than the full amount when your income and assets cannot cover the debt.
• Currently not collectible: a pause on collection when paying would leave you unable to meet basic living expenses.
• Penalty abatement: removal of penalties through first-time abatement or reasonable cause.

Many people qualify for more than one option, and the cheapest choice is not always obvious. A plan that looks affordable can cost more in interest than an offer, and an offer can fail if the IRS values your assets differently than you do. That is where a review of your actual numbers helps.