IRS Payment Options: Understanding the Main Paths

Owing the IRS does not automatically mean every taxpayer has the same resolution option. The appropriate path depends on the amount owed, filing compliance, income, expenses, assets, collection status and other facts.

1. Pay in Full When Feasible

Paying a valid liability in full generally stops additional interest from accruing on the unpaid balance. When full payment is not realistic, other collection alternatives may need to be evaluated.

2. Installment Agreements

An installment agreement allows qualifying taxpayers to make payments over time. Different procedures and documentation requirements can apply depending on the balance and proposed terms.

3. Currently Not Collectible

In certain hardship situations, the IRS may temporarily report an account as currently not collectible. This does not erase the debt, and interest and penalties may continue subject to applicable rules.

4. Offer in Compromise

An Offer in Compromise may allow qualifying taxpayers to settle for less than the full amount, but eligibility and acceptable offer amounts are governed by specific standards. Advertising that implies everyone qualifies should be treated cautiously.

5. Start With Compliance and Financial Facts

Missing returns can interfere with many collection alternatives. A resolution review should identify filing gaps and analyze income, allowable expenses, assets and collection circumstances.

Urban AZ Financial IRS Resolution Review

Urban AZ Financial helps taxpayers organize their IRS situation and evaluate available resolution pathways based on the facts. Acceptance of any IRS resolution option is not guaranteed.