Owe the IRS More Than $30,000? How to Stop the Bleeding and Regain Control

Any amount of tax debt can cause significant stress, but the burden is especially painful when your obligation reaches five figures. Between late filing fees, late payment penalties, and interest compounded daily, your debt can add up quickly, making it almost impossible to handle financial essentials from other areas of your life.

Unfortunately, in the midst of such chaos, many people freeze up or ignore their IRS debt concerns altogether. This avoidance-based approach leads to even bigger issues down the road. When in doubt, it’s best to deal proactively with the IRS, as we clarify below:

Seek an Installment Agreement

If good news can be found in your disastrous tax situation, it’s that, with a tax debt of around $30,000, you can qualify for an installment payment without providing the IRS extensive information on your financial situation. Typically, tax debt exceeding $50,000 requires a more involved approach. Timelines of up to 72 months allow you to pay off your debt little by little.

Try For an Offer in Compromise

Depending on the status of your tax returns and filing deposits, you may qualify for an offer in compromise. This valuable option makes it possible to settle with the IRS for less than you actually owe. As a taxpayer with debt exceeding $30,000, this could cut a huge chunk out of your total obligation to the IRS. Eligibility standards for OICs are notoriously strict, but the notable benefits of this approach make application worthwhile if you suspect that you could qualify.

If you’re struggling with major IRS tax debt, it’s crucial that you take action as soon as possible. At the Highland Tax Group, you’ll find both the empathy and advocacy you require. Contact us today to learn how we can help.