IRS Problem Resolution
Back taxes don't go away on their own.
Owing back taxes is stressful — but it's also a solved problem with a known process. We resolve every case via one of four paths: full payment, installment plan, Offer in Compromise, or Currently Not Collectible status.
In short
Back taxes are unpaid income, payroll, or trust-fund taxes from prior years. The IRS adds penalties and interest until the balance is paid or resolved. Four resolution paths exist: full payment, installment agreement, Offer in Compromise, or Currently Not Collectible status. The right one depends on your income, assets, and the size of the balance.
How back-tax balances grow
Unpaid balances accumulate three layers of additional cost: failure-to-file penalty (5%/month up to 25%), failure-to-pay penalty (0.5%/month up to 25%), and interest (federal short-term rate + 3%, compounded daily). A $20K balance left unpaid for three years can grow to $35K+.
The four resolution paths
- Full payment — best if you can. Stops penalties and interest immediately.
- Installment agreement — up to 72 months for balances under $50K (streamlined). Longer for larger balances with financial disclosure.
- Offer in Compromise (OIC) — settle for less than owed if you can't pay the full amount within the collection statute. Strict eligibility rules.
- Currently Not Collectible (CNC) — if monthly income barely covers necessary living expenses, the IRS halts collection until your situation changes.
The first 48 hours matter
The single most important thing is to stop the bleeding — file any missing returns (penalties keep stacking on unfiled returns even more than unpaid ones) and establish Power of Attorney so the IRS communicates with us instead of you. Both can happen within 48 hours of engaging us.
FAQ
Questions we hear about back taxes owed.
How long do I have to resolve back taxes?
Will the IRS take my house?
Related IRS topics
Often paired with back taxes owed.
IRS Installment Payment Plan
Set up an IRS installment payment plan to resolve back taxes. We recommend the plan that fits your cash flow without over-disclosing finances.
Offer in Compromise
IRS Offer in Compromise to settle tax debt for less than owed. We evaluate eligibility free; not everyone qualifies. Boca Raton + Fort Lauderdale.
Non-Filed Tax Returns
Years of unfiled tax returns? We reconstruct records, file back returns to minimize penalties, and resolve any remaining balance.
Ready for a straight answer on your taxes?
Start with a free consultation.
Call, email, or book online. We respond within one business day — every time.