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How to get help with IRS tax debt, according to experts
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Many Americans are gathering their tax documents with the April 15 federal tax filing deadline fast approaching.
Most taxpayers overpay during the year and receive a refund, as roughly 64% of tax returns processed before April 28, 2023, resulted in a tax refund. But even with the best-laid plans, it’s easy to accidentally end up with a tax debt. Miscalculating and underreporting your income, for example, is a common reason many people owe the IRS. Similarly, underestimating self-employment taxes or being unaware of new income tax rules can lead to an unexpected tax liability.
No matter the reason, receiving a tax bill from the IRS can be stressful, especially considering the potential penalties. The non-payment penalty is 0.5% of the due amount each month—up to 25%— until the balance is repaid. If the IRS doesn’t hear from you and the non-payment continues, the agency may garnish wages or even place a lien on your property.
While IRS tax debts can feel overwhelming, it’s important to take action and get help if you can’t afford to pay off the entire debt when you file.
Start by exploring your tax debt relief options online.
How to get help with IRS tax debt, according to experts
Here are some expert-backed solutions to help you satisfy your tax obligations.
File your taxes, even if you need an extension
Inaction is your enemy when you owe money to the IRS. Ignoring the problem will only make matters worse.
“Make sure to file your tax return on time, even if you can’t pay the full amount,” says Paul Miller, CPA and founder of accounting firm Miller & Company. “Not filing on time can lead to extra penalties, and that’s just extra stress you don’t need. So, send in your return on time, and if you need a bit more time, ask for an extension.”
Learn more about your tax relief options here.
Request a payment plan
It’s also critical to keep open lines of communication with the IRS. If you can’t pay your tax bill, be proactive and let them know why and promptly answer any communication you receive from the IRS. Otherwise, the agency will take the next step to collect the debt, including taking money from your bank account or placing a lien on your home.
The IRS explains how it’s possible to reach such severe collections actions on its website, saying: “You have a balance on your tax account. A notice was sent to you previously letting you know how much you owe, when it was due, and how to pay. Since the IRS did not hear from you, it is continuing with its collection process by issuing a levy or conducting a seizure.”
Leslie Tayne, a financial attorney and founder of Tayne Law Group, advises reaching out to the IRS as soon as possible to explore your options. “They might include an installment agreement, an offer in compromise—where you settle your tax debt for less than the amount owed—or temporarily delaying collection if you can prove financial hardship,” says Tayne.
Make an offer in compromise
If paying your tax debt would create a financial hardship for you or your family, consider submitting an offer in compromise. This offer is an agreement between you and the IRS to settle your tax debt for less than the amount owed. However, you must be able to show the tax bill would cause serious financial strain to your household.
As part of the review process, the IRS will assess your unique financial situation, including your income, expenses and assets. The IRS says it may approve an offer in compromise “when the amount you offer represents the most we can expect to collect within a reasonable period of time.”
If you’re unsure of your qualifications, the IRS provides a pre–qualifier tool to help you gauge your eligibility for tax relief.
Get help from Taxpayer Advocate Service
If you’re having trouble resolving your tax debt through normal IRS channels, you can receive free assistance from the Taxpayer Advocate Service (TAS). The TAS aims to help you resolve your tax issues with the IRS and also advises how to prevent future tax debt problems.
Consult a tax professional
It’s wise to get help sorting through tax debt issues and dealing with the IRS from a certified public accountant (CPA). A good CPA knows the tax code and how to best navigate the IRS collection process.
While you can resolve tax debt issues yourself, you may prefer to enlist a tax debt relief service to do it for you. These services negotiate with the IRS to help resolve your tax debt.
Due to some bad actors in the tax relief industry, it’s crucial to investigate any company you’re considering working with. “It is important to be comfortable with a tax relief company and the services it offers before proceeding with an engagement,” says certified public accountant Thomas Brock.
“Make sure any firm you entertain has a long business history, extensive experience managing tax debts and favorable user reviews.” Brock also recommends making sure the company is a member of the American Society of Tax Problem Solvers (ASTPS), the National Association of Enrolled Agents (NAEA) or the National Association of Tax Professionals (NATP).
Explore some top debt relief companies here now.
The bottom line
Owing money to the IRS can be stressful, but understanding your options and being proactive can help lead you toward a tax debt solution. While dealing with the IRS isn’t anyone’s idea of fun, communicating with the agency is essential to finding workable solutions and strengthening your financial health.
CBS News
Head of Russia’s nuclear defense forces killed in Moscow blast triggered by device hidden in scooter, officials say
Moscow — The head of Russia’s Nuclear, Biological, and Chemical Defense Forces, Lt. General Igor Kirillov, was killed along with his deputy early Tuesday in an explosion in Moscow, Russia’s Investigative Committee said.
An explosive device hidden in an electronic scooter went off outside a residential building as the two men left the structure, Agence France-Presse cites investigators as saying.
ALEXANDER NEMENOV / AFP via Getty Images
“Investigators, forensic experts and operational services are working at the scene,” committee spokesperson Svetlana Petrenko said in a statement. “Investigative and search activities are being carried out to establish all the circumstances around this crime.”
ALEXANDER NEMENOV / AFP via Getty Images
The committee carries out responsible major investigations in Russia.
Kirillov was sentenced in absentia by a Ukrainian court on Dec. 16 for the use of banned chemical weapons in Ukraine during Russia’s military operation in Ukraine that started in Feb. 2022.
AFPTV / AFP via Getty Images
Ukraine’s Security Service, the SBU, said it had recorded more than 4,800 uses of chemical weapons on the battlefield since February 2022, particularly K-1 combat grenades.
During the almost 3-year operation, Russia has made small but steady territorial gains to the nearly one-fifth of Ukraine it already controls.
Kirillov had been in his post since 2017, AFP notes.
A powerful earthquake hit the Pacific island nation of Vanuatu Tuesday, smashing buildings in the capital, Port Vila, including one housing the embassies of the U.S. and other nations. A witness told Agence France-Presse of bodies seen in the city.
Dan McGarry, a journalist with the Organized Crime and Corruption Reporting Project based in Vanuatu, told the Reuters news agency in an interview that police said at least one person had been killed and injured people had been taken to hospital.
“It was the most violent earthquake I’ve experienced in my 21 years living in Vanuatu and in the Pacific Islands. I’ve seen a lot of large earthquakes, never one like this,” he said.
The 7.3-magnitude quake struck at a depth of 35 miles, off the coast of Efate, Vanuatu’s main island, at 12:47 p.m. local time, according to the U.S. Geological Survey.
The ground floor of a building housing the U.S, French and other embassies had been crushed under higher floors, resident Michael Thompson told AFP by satellite phone after posting images of the destruction on social media.
“That no longer exists. It is just completely flat. The top three floors are still holding but they have dropped,” Thompson said.
“If there was anyone in there at the time, then they’re gone.”
Thompson said the ground floor housed the U.S. embassy, but that couldn’t be immediately confirmed.
A photo showed significant damage to the building:
STR / AFP via Getty Images
The United States has closed the embassy until further notice, citing “considerable damage” to the mission, the U.S. embassy in Papua New Guinea said in a message on social media. “Our thoughts are with everyone affected by this earthquake,” the embassy said.
The New Zealand High Commission, housed in the same building, suffered “significant damage,” a statement from Foreign Minister Winston Peters’ office said, adding that, “New Zealand is deeply concerned about the significant earthquake in Vanuatu, and the damage it has caused.”
Thompson, who runs a zipline adventure business in Vanuatu, said, “There’s people in the buildings in town. There were bodies there when we walked past.”
A landslide on one road had covered a bus, he said, “so there’s obviously some deaths there.”
The quake also collapsed at least two bridges, and most mobile networks were cut off, Thompson said.
“They’re just cracking on with a rescue operation. The support we need from overseas is medical evacuation and skilled rescue, (the) kind(s) of people that can operate in earthquakes,” he said.
STR / AFP via Getty Images
Video footage posted by Thompson and verified by AFP showed uniformed rescuers and emergency vehicles working on a building where an external roof had collapsed onto a number of parked cars and trucks.
The streets of the city were strewn with broken glass and other debris from damaged buildings, the footage showed.
Nibhay Nand, a Sydney-based pharmacist with businesses across the South Pacific, said he had spoken to staff in Port Vila who said most of the store there had been “destroyed” and that other buildings nearby had “collapsed.”
“We are waiting for everyone to get online to know how devastating and traumatic this will be,” Nand told AFP.
A tsunami warning was issued after the quake, with waves of up to three feet forecast for some areas of Vanuatu, but it was soon lifted by the Pacific Tsunami Warning Center.
Earthquakes are common in Vanuatu, a low-lying archipelago of 320,000 people that straddles the seismic Ring of Fire, an arc of intense tectonic activity that stretches through Southeast Asia and across the Pacific Basin.
Vanuatu is ranked as one of the countries most susceptible to natural disasters such as earthquakes, storm damage, flooding and tsunamis, according to the annual World Risk Report.
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Head of Russia’s nuclear defense forces killed in Moscow blast triggered by device hidden in scooter, officials say
Earthquake rocks Pacific island nation of Vanuatu, deaths feared, U.S. embassy damaged
12/16: CBS Evening News – CBS News
Head of Russia’s nuclear defense forces killed in Moscow blast triggered by device hidden in scooter, officials say
Earthquake rocks Pacific island nation of Vanuatu, deaths feared, U.S. embassy damaged