Every official IRS program for reducing, settling, or pausing your tax debt — explained in plain English with eligibility requirements, how to apply, and what to expect.
You do not need to pay a third-party tax relief company to access these programs. All can be applied for directly at IRS.gov or by calling 800-829-1040. The Taxpayer Advocate Service (TAS) at 877-777-4778 provides free help to taxpayers experiencing hardship.
The Offer in Compromise allows taxpayers to settle their entire federal tax debt for less than the full amount owed. The IRS accepts an OIC when the amount offered represents the most they can reasonably expect to collect from you — your "Reasonable Collection Potential" (RCP).
IRS payment plans allow you to pay your tax debt in monthly installments over up to 72 months. There are four types: Guaranteed (under $10K), Streamlined (under $50K), Non-Streamlined (over $50K), and Partial Pay (PPIA).
Currently Not Collectible (CNC), also called Hardship status, is granted when paying your tax debt would prevent you from meeting basic living expenses. The IRS suspends all collection activity — no levies, no garnishments, no liens — while your account is in CNC status.
Interest and penalties continue to accrue while you're in CNC status. The IRS reviews your financial situation annually. If your circumstances improve, collection will resume. However, the 10-year Collection Statute Expiration Date (CSED) continues to run — meaning debt that reaches the CSED while in CNC status expires entirely. CNC is often a transitional measure while pursuing a longer-term solution.
To apply: Call IRS Collections at 800-829-7650. Explain your financial hardship and that you cannot afford to pay. You'll need to provide income, expense, and asset information verbally or via Form 433-A/F.
Penalty abatement removes IRS penalties — which can add 25–47.5% to your balance. First-Time Penalty Abatement (FTPA) requires no paperwork and can be done by phone in 15 minutes if you have a clean 3-year compliance history.
A federal tax lien is a legal claim against your property. A levy actually seizes it. Understanding your rights — especially the Collection Due Process (CDP) hearing — can stop a levy before it happens.
If you filed a joint tax return and your spouse (or ex-spouse) underreported income, overclaimed deductions, or committed fraud without your knowledge, you may qualify to have your share of the joint tax liability separated or eliminated.
There are three types of innocent spouse relief:
The IRS Fresh Start initiative (launched in 2011 and expanded since) is a collection of policy changes designed to make it easier for struggling taxpayers to resolve tax debts. Key Fresh Start provisions include:
If you genuinely believe you don't owe the tax the IRS assessed — due to a mathematical error, misapplied payment, incorrect audit finding, or other dispute — you can submit an OIC based on "Doubt as to Liability" using Form 656-L. This is separate from the standard hardship-based OIC.
The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers who are experiencing significant hardship as a result of IRS actions or who have been unable to resolve their issues through normal IRS channels. TAS is free.
TAS can help if: IRS action has caused or is about to cause significant hardship; you've tried repeatedly to resolve an issue through normal IRS channels; you believe an IRS system, process, or procedure isn't working. Call TAS: 877-777-4778 or file Form 911.
Use the free eligibility checker on our homepage to answer 4 questions and get matched to the programs most likely to help your situation.
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