Contact the IRS and Local Taxation Offices

• The Internal Revenue Service (IRS) is very accessible for United States taxpayers. The agency is also very helpful if you are proactive in settling back taxes you owe. Contact the IRS immediately if you need any help settling back taxes, especially if you cannot immediately pay your balance in full. Discuss your financial situation with an IRS representative and request an overview of all applicable payment options.
  
  Consult the website or call the telephone number of the organization that handles taxation or revenue services in your area for state and local tax resolution. Do the same within your own country if you do not pay taxes to the United States, as the IRS will not be able to help you.
  
  

Installment Agreements and Temporary Delay

• Contact your taxation or revenue service and ask about the rules for an installment agreement if you cannot afford to pay the balance of your back taxes in full. An installment agreement allows you to pay off your debt incrementally over a period of time that you and the taxation service determine together.
  
  Request a temporary delay in payment before making a full payment or get approval to set up an installment agreement to settle your back taxes owed if you cannot afford to do either right away. Your taxation or revenue service will grant you a temporary delay if that agency deems your financial situation eligible. Keep in mind that late fees and penalties may continue to accrue throughout the duration of any installment agreement or temporary delay.
  
  

Offer in Compromise

• Request an Offer in Compromise (OIC) to settle back taxes you owe for an amount lower than the expressed balance. Your taxation or revenue service can grant your request and extend an OIC if you have financial hardship. You can then choose to pay the new, lessened back tax balance in full or request an installment agreement.