I owe the IRS about $95k in back taxes and have no savings. Feeling desperate and scared, need advice

First, take a deep breath. This situation is scary but definitely not hopeless. The IRS actually has several programs for people who can't pay their tax debt in full. Your best option is probably an Installment Agreement. With your current income, you could qualify for a payment plan that fits your financial situation. The IRS looks at your necessary living expenses and then determines what you can reasonably pay each month. Given the amount you owe, you might be eligible for what's called a Partial Payment Installment Agreement (PPIA) where you pay what you can afford until the collection statute expires (usually 10 years). You might also qualify for an Offer in Compromise (OIC), which allows you to settle your tax debt for less than the full amount. The IRS considers your ability to pay, income, expenses, and asset equity when determining eligibility. With limited assets and income, you could potentially settle for much less than what you owe. The worst thing you can do is nothing. The IRS will eventually take collection action including liens, levies, and wage garnishment. But if you're proactive, they're usually willing to work with you.

I went through something similar (though not as much as $95k) and discovered taxr.ai after trying to navigate the tax debt maze on my own. It was honestly a game-changer for my situation. The website (https://taxr.ai) asks questions about your financial situation and helps identify which IRS programs you might qualify for. I was really confused about whether to try for an installment agreement or an Offer in Compromise, and the tool walked me through everything step by step. It also helped me understand what documents I needed to gather before contacting the IRS, which saved me from making some really costly mistakes. They even have templates for hardship letters and other documents you might need. The relief of having a clear plan instead of just panicking was huge for my mental health during that stressful time.

I wanted to follow up about my experience with taxr.ai since I was initially skeptical. After my brother's situation got more urgent, I decided to give it a try. What surprised me was how it identified that he qualified for a Currently Not Collectible status that we hadn't even heard about before. The tool guided us through exactly what financial documentation to prepare and helped draft a hardship letter that actually worked. The IRS temporarily classified his account as uncollectible, which stopped all collection activities while he gets back on his feet. This wasn't something we found on our own despite hours on the IRS website. They also identified a penalty abatement opportunity that reduced his overall debt by almost 15%. I'm now helping him prepare for an Offer in Compromise based on their guidance. Definitely changed my mind about these specialized services.

If you're trying to contact the IRS to discuss your options, good luck actually getting through to a human! I spent literally weeks trying to call about my tax debt situation. Either the line would disconnect because of "high call volume" or I'd wait on hold for 2+ hours only to have the call drop. I finally used Claimyr (https://claimyr.com) after seeing someone recommend it here. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they hold your place in the IRS phone queue and call you when an actual agent is on the line. I was seriously doubtful, but within a couple hours, I was talking to a real IRS representative who helped me set up an installment plan. When you're dealing with anxiety about tax debt, the last thing you need is the additional stress of not even being able to reach someone who can help you. Being able to finally talk to someone at the IRS was the first step in getting my situation under control.

I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, my own tax situation took a turn for the worse with a levy notice, and I couldn't get through to the IRS no matter how many times I called. Out of desperation, I tried the service, fully expecting to request a refund. Within 90 minutes (after previously wasting days trying to call myself), I was connected with an IRS representative who actually helped me get the levy released while I set up a payment plan. The IRS agent I spoke with was incredibly helpful once I finally got through to them. They even helped identify some credits I qualified for that reduced my overall balance. Sometimes the hardest part is just getting someone on the phone who can actually help, and that's exactly what this service did for me. I'm still surprised at how well it worked.

One option nobody has mentioned yet is to see if you qualify for innocent spouse relief. If any of this tax debt is from joint returns with a spouse/ex-spouse who handled the finances or business, you might be able to get relief. I went through a divorce where my ex ran a business I knew little about, and I was able to get released from a significant tax liability by filing Form 8857. Not sure if this applies to your situation, but thought I'd mention it since it saved me from a somewhat similar nightmare scenario.

Have you considered bankruptcy? I was drowning in tax debt and finally filed for Chapter 7. It's not widely known, but certain income tax debts CAN be discharged in bankruptcy if they meet specific criteria: - The taxes are income taxes - You didn't commit fraud or willful evasion - The debt is at least 3 years old from the date it was due - You filed the tax return at least 2 years before filing bankruptcy - The IRS assessed the tax at least 240 days before filing bankruptcy It saved me from a similar situation. Might be worth consulting with a bankruptcy attorney for a free consultation.

I really feel for you - that level of tax debt is terrifying, but you're not alone and there ARE solutions. The anxiety and panic attacks are completely understandable, but taking action will help you feel more in control. A few important points based on what others have shared: 1. **Act NOW** - The IRS is actually more willing to work with people who are proactive rather than those who hide. Every day you wait, interest and penalties keep adding up. 2. **You likely qualify for Currently Not Collectible status** given your income level. This would temporarily stop all collection actions while you're in financial hardship. 3. **Document everything** - Start gathering your financial records (income, expenses, assets, debts). You'll need this for any payment plan or settlement option. 4. **Consider the Taxpayer Advocate Service** - This is a free IRS service specifically designed to help taxpayers in difficult situations. They can be your advocate within the IRS system. As a delivery driver making $3,200/month, you're likely judgment-proof for most collection actions anyway. The IRS can't take your primary vehicle if you need it for work, and they can't garnish wages below certain thresholds. Don't let the fear paralyze you. The IRS deals with situations like yours every single day. Take it one step at a time, and remember - this problem has solutions.