IRS FAQs

Tax debt can be stressful to deal with. Here’s some helpful tips on setting up payment plans, requesting affordable installment agreements, reducing your tax debts through an Offer in Compromise, or discharging your tax debts through bankruptcy.

The IRS often files tax liens when an outstanding federal tax has not yet been paid in full. Taxpayers who owe the IRS can protect themselves and their credit by taking steps to prevent a federal tax lien from being filed. After a tax lien has been filed, it may be possible to get the lien withdrawn or released.

Installment Agreements

A monthly payment plan is generally the easiest way to set up an arrangement to pay off any taxes owed to the Internal Revenue Service. There’s four different types of installment agreements offered by the IRS. The important thing is knowing which installment agreement you qualify for.

IRS Payment Plan • How to Request an Installment Agreement

Setting up a monthly payment plan with the Internal Revenue Service is easy. Either you or your tax professional can set up an installment agreement quickly either over the phone or by filling out some paperwork. In IRS jargon, a monthly payment plan is called an installment agreement.

IRS Tax Penalties and Interest

Penalties and interest are added to any federal tax that is unpaid or paid after the due date. There are two different penalties: one for filing a tax return late, and another for paying tax late. The IRS also assesses interest on late payments as well.

IRS Statute of Limitations

Time Limits to Claim Tax Refunds or to Pay
The IRS has three years to give you a refund, three years to audit your tax return, and ten years to collect any tax due. Together, these laws are called the “statutes of limitations.”

IRS Proposed Assessments and Substitute Tax Returns

Sometimes the Internal Revenue Service will take educated guesses about how much taxes a person might owe. These educated guesses are called “proposed assessments.”

Currently Not Collectible

Currently Not Collectible means that a taxpayer has no ability to pay his or her tax debts. The IRS can declare a taxpayer “currently not collectible,” after the IRS receives evidence that a taxpayer has no ability to pay.

Before You Apply for Tax Amnesty

Find out what tax amnesty is all about, especially the difference between limited-time-only amnesty programs and on-going voluntary disclosure initiatives. Get tax relief for those tax returns you haven’t filed, or back taxes you are trying to pay off.

Understanding Your IRS Notice

The IRS sends notices to taxpayers in a variety of situations. Sometimes the letters from the IRS are not very clear. Here’s help for figuring out what your IRS notice really means.