If you owe the IRS and feel overwhelmed, you’re not alone — and more importantly, you’re not out of options. The IRS offers several resolution programs designed to help taxpayers manage or reduce their tax debt. But navigating these programs isn’t easy, and the consequences of inaction can be severe.
Here’s a quick overview of the main IRS resolution options and who may qualify:
1. Offer in Compromise (OIC)
An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe. It’s not a quick fix — the IRS only accepts offers when it believes:
- You genuinely can’t afford to pay the full balance.
- You are in full compliance with tax filing and estimated payment requirements.
- Your financial information shows that collection of the full amount is unlikely.
OICs are subject to detailed analysis of your income, assets, and living expenses. Many offers are rejected because they are submitted without a full understanding of the IRS’s strict guidelines.
2. Installment Agreements
If you can’t pay your balance in full but can manage monthly payments, an Installment Agreement4 (IA) may be the best path forward.
You may qualify for:
- A streamlined agreement (no financials required) if you owe under $50,000 and can pay within 72 months.
- A partial payment agreement if you can only afford to pay a portion of the debt over time.
- A customized plan based on a detailed financial review.
Even with an IA, penalties and interest continue to accrue until the debt is fully paid.
3. Currently Not Collectible (CNC) Status
If you’re experiencing serious financial hardship — for example, you’re unemployed, on a fixed income, or barely covering basic living expenses — the IRS may temporarily classify your account as Currently Not Collectible.
In CNC status:
- The IRS halts active collection efforts, including levies and garnishments.
- Penalties and interest continue to grow.
- The IRS may revisit your case in future years if your financial situation improves.
Don’t Ignore IRS Notices
It’s easy to feel paralyzed when the IRS starts sending letters. But ignoring IRS notices is the worst thing you can do. Many notices come with strict deadlines — miss them, and you may lose your right to appeal, challenge penalties, or negotiate better terms.
Some notices, like the Final Notice of Intent to Levy, require action within 30 days. Others, like a Notice of Deficiency, must be addressed within 90 days or you lose your right to go to Tax Court.
Why Qualified Help Matters
IRS resolution isn’t just about filling out forms — it’s about knowing the rules, deadlines, and how to present your financial picture in a way the IRS accepts. At Noble Pacific Tax Group, we’ve helped countless clients reduce or manage their tax debt through strategic representation.
We understand the IRS playbook and how to navigate it — so you don’t have to do it alone or risk making costly mistakes.
If you’ve received an IRS notice or are struggling with tax debt, contact us today. The sooner you act, the more options you have.
