IRS Launches “Tax Debt Help” Tool — What to Do If You Owe
If you owe the IRS and aren’t sure what to do next, a new tool can help you evaluate your options — before taking action.
The IRS recently released its Tax Debt Help tool, which walks taxpayers through possible solutions based on their situation — without requiring personal information.
Why Acting Early Matters
Delaying can get expensive:
• Failure-to-pay penalty: 0.5% per month (up to 25%)
• Failure-to-file penalty: 5% per month
• Interest: compounds daily
File your return even if you can’t pay.
What the Tool Does
• Helps you understand IRS payment options
• Guides you based on your financial situation
• Lets you explore privately (no SSN required)
It’s a starting point, not a solution.
Your Main Options
Short-Term Plan (≤180 days)
• No setup fee
• Balance under $100,000
Installment Agreement
• Monthly payments over time
• Typically under $50,000
Offer in Compromise
• Settle for less (if qualified)
Hardship Status
• Temporary pause on collections
Key Requirement
All tax returns must be filed first.
Bottom Line
The new IRS tool makes it easier to understand your options — but choosing the right strategy still matters.
The wrong approach can cost more in interest and delay resolution.
Tax Debt Tool Link: https://www.irs.gov/payments/get-help-with-tax-debt
Need Help?
If you owe the IRS and want to handle it the right way the first time, let’s talk.
Free consultation available.
This article is for informational purposes only and does not constitute tax advice.
Every situation is different. Please contact us directly to discuss your specific facts and circumstances.