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What You Can Do When You’re Unable to Pay Federal Taxes

Updated: Aug 22


Coast to Coast - IRS Help

IRS Tax Relief - Fresh Start Program

If you have not already done so, file your 2019 tax return. The Internal Revenue Service (#IRS) will not work with a taxpayer who has unfiled tax returns. You must be what the IRS calls "compliant.

If you cannot afford to make any payment after paying your everyday expense, you can contact the IRS and ask to be placed in “currently not collectible” status. You will be required to provide proff and documents will need to be provided. The IRS will review your financial information to determine whether you can afford to make any monthly payments.

If you cannot, and have no assets you can sell to pay your tax liability, the IRS will place you in “currently not collectible” status. CNC (#CurrentlynotCollectible) status will last approximately 12 to 18 months. While in that status, the IRS will cease enforcement actions. The IRS will occasionally review your finances to determine whether you should remain in “currently not collectible” status.

Should you owe less than $100,000 and can make monthly payments, you can apply for an installment agreement on the IRS payment agreement (#IRSinstallmentagreement) website or by filing Form 9465. An installment agreement requires monthly payments. The maximum length depends on the amount owed. The IRS may charge a payment plan setup fee. If you enter into an IRS installment agreement, make your payments with a debit card so that the IRS does not file a tax lien.

If you are in “currently not collectible” status, or on an installment payment plan, substantial penalties and interest will continue to accrue. Thus, it is in your best interest to pay your tax debt as soon as possible.

Another option is to request an “Offer in Compromise,” in which you offer to pay less than you owe to resolve your debt. An OIC (#OfferinCompromise) may be appropriate if you will not ever be able to pay what you owe. You can offer to pay within five months, or to make monthly payments over two years. The IRS reviews financial information to evaluate a request for an Offer in Compromise. The IRS will accept a settlement offer if it determines you are offering as much as it will be able to collect from you.

If you are uncomfortable dealing with the IRS, give our tax relief team a call. Flat Fee Tax relief offers a free, no-obligation consultation.

The tax professionals at Flat Fee Tax Relief has been providing valuable tax relief options at a very affordable fee for more than a decade. Our tax pros are strategically located in Clearwater, Florida, and San Diego, California. This allows our IRS Tax Attorneys to protect our clients from coast to coast from 8 A.M. Eastern to 6 P.M. Pacific time. The extra hours are a tremendous advantage when releasing an IRS levy in one day is of paramount importance.


CALL: 1-866-747-7435



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