Owe over $130k after IRS audit - what kind of payment plan can I realistically get?

Having worked with clients in similar situations, I can tell you that the IRS does offer several payment options for large tax debts. An installment agreement is likely your best option. For debts over $50,000, you'll need to submit Form 9465 (Installment Agreement Request) along with Form 433-F (Collection Information Statement). The IRS typically allows up to 72 months (6 years) to pay, but can extend this in certain circumstances. You might also consider an Offer in Compromise if you truly cannot pay the full amount, though these are harder to qualify for. This allows you to settle your tax debt for less than the full amount if paying would create financial hardship. Another option is to request Currently Not Collectible status if paying anything would leave you unable to meet basic living expenses, though interest and penalties continue to accrue. While the process may seem overwhelming, the IRS is generally willing to work with taxpayers who are making good-faith efforts to resolve their tax issues.

After my audit nightmare last year, I found this amazing service called taxr.ai (https://taxr.ai) that helped me figure out my payment options. I was in a similar situation - owed about $85k and was completely lost about what to do next. The tool analyzed my financial situation and showed me exactly what payment plans I'd qualify for. It even helped me complete the paperwork properly, which was a huge relief since mistakes can delay the whole process. What I found most helpful was seeing a breakdown of different scenarios based on my specific financial situation rather than just general advice.

I wanted to follow up about my experience with taxr.ai since I was skeptical at first. After our conversation, I decided to give it a try with my $78k tax debt from a business audit. The analysis showed I might qualify for partial payment installment agreement that I hadn't considered before. The documentation guidance was incredibly helpful - I had no idea what supporting documents would strengthen my case. Ended up getting approved for a $650 monthly payment (much lower than the $1,100 initially proposed) and they suspended some penalties! The service definitely paid for itself in the first month alone of my payment plan.

One thing nobody's mentioned is how impossible it is to even TALK to someone at the IRS about payment options. I spent literally weeks trying to get through on their phone lines last year when I owed $42k after an audit. Complete nightmare. I finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes instead of waiting for hours or getting disconnected. You can see how it works here: https://youtu.be/_kiP6q8DX5c This saved me so much frustration because resolving a six-figure debt REQUIRES actually speaking with someone who can review your specific situation. The automated payment plans don't work well for large amounts like yours.

I take back what I said about Claimyr. I was super skeptical but tried it yesterday out of desperation after failing to get through for weeks. Within 35 minutes I was talking to an actual IRS agent who helped me understand my options for the $63k I owe. The agent I spoke with scheduled me for a longer call with someone from their payment program team next week. She mentioned that for larger amounts like mine (and definitely for amounts over $100k), they prefer to create a customized payment plan rather than using the automated system. Would never have known this if I hadn't finally gotten through to a human.

Something nobody has mentioned yet is that you might want to look into the Taxpayer Advocate Service. They're an independent organization within the IRS that helps taxpayers resolve problems. I used them when I owed about $70k and felt overwhelmed. They helped me understand all my options and even intervened when the initial payment plan offered didn't take my financial situation into account properly. Their service is free and they really know their stuff about payment options for large debts.

Has anyone mentioned penalties and interest yet? That's what really killed me when I owed the IRS after an audit. The amount kept growing while I was trying to figure out payment options. Make sure your CPA discusses penalty abatement options with you. If this is your first time having tax issues, you might qualify for First Time Penalty Abatement, which could save you thousands. Interest can't typically be abated, but penalties often can be if you have reasonable cause.

I went through something similar last year - owed $147k after an audit revealed my tax preparer had completely fabricated deductions. The stress was unbearable at first, but I want to reassure you that the IRS does work with people in our situation. Here's what I learned: For amounts over $100k, they're much more flexible than the standard guidelines suggest. I ended up getting an 84-month payment plan (7 years) at around $1,750/month after demonstrating financial hardship. The key was providing detailed financial documentation showing that shorter payment terms would prevent me from meeting basic living expenses. My advice: Don't drain your retirement accounts. The IRS would rather have guaranteed monthly payments than force you into financial ruin. Also, consider whether the fraudulent preparer issue gives you grounds for penalty abatement - my CPA was able to get about 40% of my penalties removed by arguing reasonable cause. The whole process took about 4 months to finalize, but having that payment plan in place gave me so much peace of mind. You'll get through this.