Resolve Your Back Taxes

Generally, the IRS has 10 years from the date of assessment to collect a tax debt (the Collection Statute Expiration Date, or CSED). However, certain actions — such as filing an Offer in Compromise or requesting a Collection Due Process hearing — can suspend or extend this period. Understanding your CSED dates is critical to building a resolution strategy, because tax debt that passes its CSED becomes legally uncollectible.

The IRS may file a Substitute for Return (SFR) on your behalf — but it won't include deductions, credits, or filing status elections you're entitled to. The resulting assessment is usually much higher than what you'd actually owe if you filed properly. Additionally, unfiled returns can disqualify you from resolution programs like Offer in Compromise and may expose you to criminal liability for willful failure to file.

Failure to pay is a civil matter, not criminal. However, willful failure to file a return or tax evasion are criminal offenses. The key distinction: simply not being able to pay is not a crime — but deliberately hiding income or refusing to file can be. Filing your returns, even if you can't pay, protects you from criminal exposure. The IRS wants to collect money, not put people in jail.

Yes — the IRS offers several types of installment agreements. For debts under $50,000, you may qualify for a streamlined agreement with minimal financial disclosure. For debts between $50,000 and $100,000, a streamlined agreement is also available with certain conditions. Amounts above $100,000 require detailed financial disclosure on Form 433-A or 433-F. We analyze your finances and negotiate terms that fit your budget.

Timelines vary based on how many years are involved, whether returns need to be filed, and which resolution program is appropriate. Simple cases with up-to-date returns may resolve in 4–8 weeks. Complex multi-year situations with unfiled returns, multiple tax periods, and lien/levy issues can take 6–12 months. We give you a realistic timeline during your free review based on your specific facts.

You may qualify for Currently Not Collectible (CNC) status. The IRS reviews your income and allowable living expenses under the Collection Financial Standards — if you cannot afford basic living costs after paying the IRS, they may temporarily suspend collection. Interest and penalties may continue to accrue during CNC status, but collection actions stop. We evaluate this during your review.

Tax liens — specifically, a Notice of Federal Tax Lien (NFTL) — used to appear on credit reports and could significantly lower your credit score. As of 2018, the three major credit bureaus (Equifax, Experian, TransUnion) removed most tax liens from credit reports. However, tax liens are still public records that lenders can discover through public record searches, and they can still affect mortgage applications, business loans, and security clearances.

The IRS can seize and sell real property, including your primary residence, to satisfy a tax debt — but this is generally a last resort used only after other collection methods have been exhausted and the debt is substantial. The IRS must obtain court approval to seize a primary residence, and there are procedural protections in place. Seizure of a primary residence is relatively uncommon but is possible in appropriate cases — particularly when the taxpayer has substantial equity and has not responded to collection efforts.

Yes — a bank levy freezes the entire available balance in your account up to the amount of the tax debt. The bank holds the funds for 21 days before sending them to the IRS. However, certain funds may be exempt — including Social Security benefits, VA benefits, and child support if you can identify and document them. If you face a bank levy, read our Bank Levy resource page for a complete explanation.

The failure-to-file penalty is 5% of the unpaid tax per month (or partial month) that a return is late, up to a maximum of 25%. This is 10 times the failure-to-pay penalty (0.5% per month). This is why filing your return — even if you cannot pay anything — is always the right move. Filing stops the much steeper failure-to-file penalty from growing further. If both penalties apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty amount, so the combined maximum is 47.5% (25% + 22.5%) of the unpaid tax — plus daily compounding interest.

The CSED is the date — generally 10 years from the date the tax was assessed — after which the IRS can no longer legally collect the debt. Once the CSED passes, the tax debt is extinguished. However, certain actions can extend or suspend the CSED: filing an Offer in Compromise, requesting a Collection Due Process hearing, filing for bankruptcy, being out of the country for an extended period, or entering into an installment agreement. The IRS tracks CSEDs automatically, and understanding your CSED is a key part of any resolution strategy.

Yes, through the Offer in Compromise (OIC) program. The IRS accepts an OIC when your reasonable collection potential (RCP) — based on your income minus allowable expenses plus your net realizable equity in assets — is less than the total tax debt. The IRS accepts OICs in approximately 30–40% of filed cases. The evaluation is formula-driven; it is not an arbitrary negotiation. Visit our Offer in Compromise page for a complete walkthrough of OIC eligibility and the application process.

A tax lien is the IRS's legal claim against your property — it secures the government's interest in your assets. A Notice of Federal Tax Lien (NFTL) is filed publicly to put creditors on notice. A levy, by contrast, is the actual taking of property — a bank levy seizes funds from your account; a wage levy takes a portion of each paycheck. A lien is the legal claim; a levy is the enforcement action. You can have a lien without a levy, but a levy almost always follows a lien. See our Lien Removal and Levy Release pages for more.

The IRS sends all notices to your last known address — the address on your most recently filed return or the address you last provided to the IRS. If you move and do not update your address (using Form 8822), you may not receive critical notices — including the Final Notice of Intent to Levy. Legally, the IRS must send notices to your last known address; they are not required to find you. If you have moved and have unfiled returns or unpaid taxes, update your address with the IRS immediately and request your transcripts to see what notices may have been issued.

Some tax debts may be dischargeable in bankruptcy, but specific conditions must be met: the tax return was due at least three years before the bankruptcy filing, the return was actually filed at least two years before filing, the tax was assessed at least 240 days before filing, and there was no fraud or willful tax evasion. Even if the taxes are not dischargeable, bankruptcy can provide a structured environment for resolving tax debt through a Chapter 13 plan. Bankruptcy and tax resolution are complex intersecting areas — professional guidance is essential.

The IRS's First-Time Abate (FTA) policy allows for removal of certain penalties if you have a clean compliance history for the prior three tax years — meaning no penalties assessed, all returns filed, and all taxes paid (or arranged to be paid). FTA applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties. It is an administrative waiver — you do not need to prove reasonable cause, just a clean prior three years. Read our Penalty Abatement page for details.

The most reliable way is to pull your IRS account transcripts for all years in question — we do this as the first step in our process. Your account transcript shows the assessed balance for each tax year, including tax, penalties, and interest. You can request transcripts online at IRS.gov, by mail using Form 4506-T, or by phone at 1-800-829-1040. Alternatively, we can pull your transcripts with a signed Form 8821 or 2848. The transcript is the definitive record — do not rely on memory or estimates.

The IRS Fresh Start initiative — launched in 2011 and expanded since — includes several provisions that make it easier to resolve back taxes: streamlined installment agreements for debts up to $50,000 (expanded from the prior $25,000 limit), more flexible OIC terms, and expanded CNC criteria. While 'Fresh Start' is not a specific IRS program you apply for, it refers to this broader set of policy changes that make tax resolution more accessible. Read our Fresh Start guide in Resources.

First, gather all IRS notices you have received. Second, request your IRS account transcripts (or authorize us to do so). Third, do not file returns you are not ready to file correctly — an incorrectly filed return can create more issues. Fourth, call us for a free, confidential review. The single most important action is to engage before enforcement escalates — the earlier you address back taxes, the more resolution options remain available and the less expensive the outcome typically is.

Yes — you can contact the IRS directly, request your transcripts, file missing returns, and apply for payment plans or OIC on your own. However, tax resolution involves detailed financial analysis using IRS standards, procedural deadlines that can permanently affect your rights, specific forms with significant implications if prepared incorrectly, and strategic decisions about which program to pursue and when. Many taxpayers find that professional guidance helps them navigate these complexities more effectively.

Once your back taxes are resolved — whether through payment, installment agreement, OIC, or CNC — the focus shifts to staying compliant going forward. This means filing all future returns on time, making estimated tax payments if you are self-employed, adjusting withholding if you are a W-2 employee, and keeping your address current with the IRS. We help you establish a compliance plan so you never face back taxes again. If you were in an installment agreement or OIC, compliance is a condition — failing to file or pay going forward can cause the IRS to revoke the agreement.