Not everyone qualifies for every option, and no program is guaranteed. These summaries are general information, not advice about your case.
Offer in Compromise
A possible settlement of your tax debt for less than the full amount owed, if you qualify.
An Offer in Compromise (OIC) is a program that lets some taxpayers settle a tax debt for less than the full balance when they cannot pay in full and the tax agency agrees that the offered amount is the most it can reasonably expect to collect. Qualification is limited and typically depends on income, expenses, assets, and your ability to pay. An OIC is not guaranteed, and applying does not automatically stop all collection activity. This is general information, not a determination of whether you qualify.
Installment agreements
A monthly payment plan to pay what you owe over time.
An installment agreement is a formal payment plan with the IRS or a state tax agency. If you cannot pay your balance in full, you may be able to make monthly payments until the debt is resolved. Terms, fees, and eligibility can vary by the amount owed and your tax situation. Staying current on required filings and payments is usually required to keep a plan in good standing. This is general information, not tax advice.
Currently Not Collectible
Temporary relief from active collection if you cannot afford to pay.
Currently Not Collectible (CNC) status may be available if you can show that paying your tax debt would leave you unable to meet basic living expenses. If granted, the agency may temporarily pause active collection, such as levies. Interest and penalties may still accrue, the debt is not forgiven, and the agency can review your situation later. CNC is not the same as a settlement or payment plan. This is general information, not a promise of relief.
Penalty abatement
A request to reduce or remove certain tax penalties in qualifying situations.
Penalty abatement is a request to remove or reduce certain penalties, such as for late filing or late payment. The IRS and some states may consider first-time penalty abatement or reasonable-cause requests when you can show a qualifying reason, such as a serious illness, a natural disaster, or other circumstances beyond your control. Tax itself and interest are treated differently from penalties. Approval is not automatic. This is general information, not legal or tax advice.
Innocent spouse relief
Possible relief from a joint tax debt you did not know about or should not be held responsible for.
Innocent spouse relief, and related options such as separation of liability or equitable relief, may help a spouse or former spouse who filed a joint return and believes they should not be held fully responsible for tax, penalties, or interest attributable to the other person. These requests have specific rules, documentation requirements, and deadlines. Outcomes depend on the facts of each case. This is general information, not a determination of eligibility.
Wage garnishment, levy, and lien release
Help understanding collection actions and options that may stop or release them.
A wage garnishment or wage levy can take money directly from your paycheck. A bank levy can freeze or take funds from an account. A tax lien is a public claim against your property that can affect credit and the ability to sell or refinance. Depending on your situation, options may include a payment plan, Currently Not Collectible status, an Offer in Compromise, or a lien withdrawal or release once certain conditions are met. Acting quickly after a notice is important. This is general information, not legal advice.