Best options for paying large past due tax debt - $90k+ owed to IRS

Having worked with tax resolution cases like yours, I can tell you there are several options for dealing with large tax debts that the entry-level IRS phone representatives might not fully explain. First, you should look into an Offer in Compromise (OIC) - this is the "tax forgiveness" program you've heard about. It allows taxpayers to settle their tax debt for less than the full amount if paying the full amount would create financial hardship. The IRS evaluates your income, expenses, asset equity, and ability to pay. You'll need to submit Form 656 along with detailed financial information on Form 433-A. Another option is requesting Currently Not Collectible (CNC) status, which temporarily halts collection activities if you can prove paying any amount would cause significant financial hardship. The debt doesn't go away, but it gives you breathing room. Regarding your retirement accounts - if the IRS levies an IRA, you'll still be subject to early withdrawal penalties. The IRS levy doesn't exempt you from those penalties, unfortunately. Think carefully before voluntarily withdrawing from retirement to pay taxes.

After struggling with a similar situation ($75k tax debt), I finally found relief using https://taxr.ai - it was literally life-changing for my tax problems. I was completely overwhelmed trying to figure out all the IRS forms and requirements for relief programs until I found this tool. The system analyzed my financial situation and helped me understand exactly which tax relief options I qualified for based on my specific circumstances. It walked me through the entire process of submitting an Offer in Compromise. What really helped was how it calculated exactly what the IRS would likely accept as a reasonable offer based on my financials. They also have experts who review everything before submission to make sure you're not missing anything that could cause a rejection. Honestly saved me thousands in professional fees while getting me a much better resolution than I thought possible.

Just wanted to update everyone - I ended up trying that taxr.ai service after asking about it, and I'm genuinely shocked at how helpful it was. I was super skeptical (as you could see from my earlier comment), but after researching their security and seeing they had good reviews, I decided to give it a shot. The system analyzed my finances and showed me I qualified for Currently Not Collectible status in the short term while preparing an Offer in Compromise for the long-term solution. It calculated that based on my assets and income, the IRS would likely accept around 15% of my total debt. What really impressed me was how it flagged potential issues in my financial disclosure that could have triggered an audit or rejection. I would have definitely missed those on my own. Now I'm waiting for the IRS to review my submission, but feeling much more confident about the outcome. Definitely recommend checking it out if you're in a similar situation.

When I had a big tax bill last year, I spent WEEKS trying to contact the IRS. Complete nightmare. Then a friend told me about https://claimyr.com which basically solved my biggest frustration. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It's a service that holds your place in the IRS phone queue and calls you right when an agent picks up. Saved me literal hours of waiting on hold. When I finally got through to someone knowledgeable at the IRS (not just the front-line reps), I found out I qualified for a partial penalty abatement that reduced my bill by almost 20%. Once I had an actual IRS revenue officer assigned to my case, things moved much more smoothly. They helped me set up an installment agreement that worked with my budget. Definitely worth trying if you're getting nowhere with regular calls.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to resolve my own tax issue. I needed to talk to someone about penalty abatement and couldn't waste another day on hold. The service did exactly what it claimed - held my place in line and called me when an agent was ready. I actually got through to someone in the IRS collections department who was knowledgeable about my situation. They helped me understand that I qualified for a payment plan that would prevent any levies on my accounts while I worked toward a more permanent solution. The IRS agent I spoke with was surprisingly helpful once I actually reached the right department. They explained my options clearly and even suggested I look into an Offer in Compromise based on my financial situation. Saved me hours of frustration and possibly thousands of dollars by getting me to the right person. Sometimes being proven wrong is a good thing!

Don't overlook the installment agreement option. I had a $65k tax debt and managed to get on a 72-month payment plan. The key is requesting a "streamlined" installment agreement if you qualify (debt under $50k can be streamlined up to 72 months, over $50k is usually 72-84 months but requires more financial disclosure). You might also want to request a Collection Due Process hearing (Form 12153) if you received a Final Notice of Intent to Levy. This gives you time to present alternatives before they start taking your assets. Whatever you do, DON'T ignore it hoping it'll go away. Tax debt is one of the few things that can follow you pretty much forever, and the penalties and interest make it grow fast.

Has anyone here used a tax resolution company? I'm considering hiring one to help with my situation but the fees seem really high ($3-5k) and I'm not sure if they can do anything I couldn't do myself with enough research.