Receiving a notice from the IRS can be overwhelming, especially if you owe more back taxes than you can afford to pay. Whether the debt is from years of unfiled returns, underreported income, or a sudden tax bill you didn’t expect, ignoring it will only make things worse.
The good news is that the IRS offers several options to help taxpayers resolve their debts without draining their bank accounts or losing sleep.
At Anderson Bradshaw Tax Consulting, we specialize in helping individuals and business owners navigate these options and avoid aggressive collection actions. If you’re facing a tax debt you can’t pay in full, here’s what you need to know and what you should do next.
Step 1: Don’t Ignore the Problem
It’s tempting to put IRS letters aside but doing nothing is the worst option. Penalties and interest accumulate daily. If the balance goes unpaid, the IRS can file tax liens, garnish wages, or levy your bank account. Taking early action helps preserve your options and can prevent these consequences entirely.
Step 2: Understand Your Total Tax Liability
Many clients come to us unsure of exactly how much they owe. The IRS may have added penalties, filed a substitute return on your behalf, or miscalculated something based on missing information. The first step is to pull your IRS transcripts and confirm the full amount owed, including any accrued penalties and interest.
We handle this step for you, that is, contacting the IRS directly on your behalf to get a complete and accurate picture of your tax liability.
Step 3: Explore Your Resolution Options
The IRS offers several programs to help taxpayers manage or reduce the amount of taxes they owe. These include:
Installment Agreements
Installment agreements allow you to pay your balance over time through manageable monthly payments. There are full-payment plans, partial-payment plans, and streamlined options depending on how much you owe and your financial situation.
Offer in Compromise (OIC)
Offer in compromise program allows you to settle your tax debt for less than the full amount owed if paying in full would create financial hardship. It’s difficult to qualify without expert help, but for the right case, it can eliminate tens of thousands of dollars in debt.
Currently Not Collectible Status (CNC)
If you truly cannot afford to make any payments, the IRS may place you in Currently not Collectible status and pause all collection activity until your financial situation improves. Interest and penalties may continue, but you gain breathing room and avoid levies.
Penalty Abatement
In some cases, you may qualify for penalty abatement program, and we can request that the IRS remove or reduce penalties based on reasonable cause or first-time relief.
Each option has its own qualification criteria, paperwork, and strategic timing. Choosing the right one depends on your income, assets, expenses, and future earning potential.
Step 4: Protect Your Assets
If your case is in collections, time is critical. The IRS can garnish wages, levy bank accounts, or file liens against your property. Once that happens, the damage can take months or even years to reverse.
Our tax relief professionals act quickly to halt enforcement actions while we negotiate a solution. We communicate directly with the IRS on your behalf, so you don’t have to face them alone.
Step 5: Work with a Specialized Tax Resolution Expert
Not every accountant or CPA is equipped to deal with the IRS collections process. You need a team that understands how the IRS thinks, how its systems work, and how to present your financials in a way that maximizes your outcome.
At Anderson Bradshaw, this is all we do. With decades of experience and thousands of successful resolutions, we help our clients reduce or eliminate their tax debt, avoid aggressive enforcement, and move forward with peace of mind.
Get a Tax Consultation with Anderson Bradshaw
Owing money to the IRS is stressful, but it doesn’t have to ruin your life. There are proven solutions available, and the sooner you act, the more control you’ll have over the outcome.
If you owe back taxes and don’t know where to start, we’re here to help.
Don’t wait any longer and take control of your tax situation. Our tax professionals at Anderson Bradshaw Tax Consulting are dedicated to finding the best solution for your specific needs, whether it’s negotiating a payment plan, reducing penalties, or resolving your tax debt.
Schedule a confidential consultation with us today. Our team will review your case, explain your options clearly, and fight for the best possible resolution.
Call us at 877.550.3911 or visit www.AndersonBradshawTax.com to learn more.
