Behind on $10k in 2022 back taxes - need advice on handling IRS debt

The good news is that you have options! The IRS actually works with taxpayers much more than most people realize. First, yes, they absolutely offer payment plans called Installment Agreements. You can apply online through the IRS website for debts up to $50,000. For $10k in back taxes, you'll likely qualify for a Streamlined Installment Agreement which is the easiest to get approved. You'll need to decide how much you can afford monthly - the IRS will want the debt paid within 72 months if possible. Interest and penalties will continue to accrue, but they stop any collection actions once you're on a plan. If your financial situation is truly dire, you might qualify for an Offer in Compromise where you settle for less than the full amount, but these are harder to get approved and require proving significant financial hardship. The worst thing you can do is nothing! The IRS has significant collection powers including wage garnishment and property liens, but they typically only use these after multiple notices and opportunities to resolve the debt.

Hey there, I went through almost the exact same situation last year but with about $13k in back taxes from self-employment income. After weeks of freaking out and losing sleep, I finally found a solution through taxr.ai (https://taxr.ai) that really helped me understand my options and figure out next steps. I uploaded my notices from the IRS and got a detailed breakdown of my options including payment plan calculations, potential penalties, and even eligibility for relief programs I didn't know existed. The system analyzed my specific situation and gave me a personalized plan - much more helpful than the generic advice I was finding online. What I appreciated most was that it showed me exactly how to submit my installment agreement request properly so it wouldn't get rejected (which apparently happens a lot). It also calculated the true cost of different payment options with the accruing interest factored in.

Just wanted to update everyone - I went ahead and tried taxr.ai after my skeptical comment above. I'm honestly surprised at how helpful it actually was. The system identified that I might qualify for currently not collectible status due to my current financial hardship (lost my job recently), which I had no idea existed. It generated all the paperwork I needed to submit to the IRS and calculated exactly what information to include on my financial statement. Two weeks after submitting everything, I got approved for hardship status which puts my collections on hold for 12 months while I get back on my feet. The platform also helped me create a plan for when my financial situation improves so I'm not blindsided when the collection process restarts. Really glad I gave it a shot despite my initial skepticism.

One thing nobody's mentioned yet that saved me with my $15k tax bill was using Claimyr (https://claimyr.com) to actually get through to a human at the IRS. I spent WEEKS trying to call them directly with no luck - either endless holds or disconnects. With Claimyr, I got a call back from the IRS in about 45 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was able to explain my situation to the agent, who was actually pretty understanding, and got on a payment plan that same day. They even waived some penalties since it was my first time having issues. Being able to actually talk to someone made a huge difference - the agent suggested options I hadn't considered from just reading the website. Definitely worth it when you're dealing with a stressful tax situation and need answers quickly.

I need to follow up on my skeptical comment above. After continuing to fail getting through to the IRS on my own for another week (seriously, I tried calling at every "recommended" time with no luck), I broke down and tried Claimyr. Within an hour, I was talking to an actual IRS representative. I was genuinely shocked. The agent helped me set up a partial payment installment agreement that works with my current budget. I also learned I was eligible for a first-time penalty abatement that the agent processed right on the call, which saved me over $800. I still think the IRS needs to fix their phone system so services like this aren't necessary, but I can't argue with results. Having a real conversation made resolving my tax issue much easier than trying to figure everything out from notices and the website.

Don't overlook checking if your original tax return was actually correct. I thought I owed $12k in back taxes until I had a tax professional review my return. Turns out I had missed several deductions as a self-employed person. Filed an amended return and my liability dropped to around $7,500. Worth spending a few hundred bucks on a CPA review if you did your taxes yourself originally. Even if you used software, it's only as good as the info you put in.

Has anyone considered bankruptcy as an option for tax debt? I've heard that older tax debts can sometimes be discharged.