Finding out you owe the IRS money is stressful — but it doesn’t have to be a crisis. The IRS offers several resolution options for taxpayers who can’t pay in full, and knowing your options can save you thousands in penalties and interest. Here’s a practical guide to what you can do.
This post contains affiliate links. If you use a service through our links, we may earn a commission at no extra cost to you. We only recommend services we’ve researched and believe are genuinely helpful.
First: Don’t Panic — and Don’t Ignore It
The worst thing you can do when you owe the IRS is nothing. Ignoring a tax bill leads to escalating penalties, interest charges, and eventually collections activity. The good news: the IRS actually wants to work with you. They offer structured payment plans, hardship programs, and other options designed to help taxpayers get back into good standing.
The key is acting quickly — before penalties stack up and before the IRS takes enforcement action like levying your bank account or garnishing wages.
Option 1: Set Up an IRS Payment Plan Online
If you owe up to $50,000 (or even up to $100,000 in some cases), you may qualify for an IRS installment agreement — essentially a monthly payment plan. You can apply directly with the IRS, but the process can be confusing and time-consuming.
⚡ 97tax — Fast IRS Payment Plan Setup
97tax.com is an IRS-authorized e-file provider that specializes in setting up IRS payment plans online — in less than 10 minutes. They’re BBB accredited and handle the paperwork and IRS communication for you.
Who it’s for: Anyone who owes the IRS and wants a streamlined, professional setup without the hassle of dealing with the IRS directly.
- Setup in under 10 minutes
- IRS-authorized e-file provider
- BBB accredited
- No phone calls or IRS visits required
- One-time flat fee — no surprises
- Service fee applies (one-time)
- Best for straightforward payment plan cases
Best for: Taxpayers who owe up to $100,000 and want a quick, professional IRS payment plan setup.
Set Up Your IRS Payment Plan with 97tax →Option 2: Get Professional Tax Preparation Help
Sometimes you owe money because your taxes weren’t prepared correctly — or because you missed deductions and credits you were entitled to. A professional tax prep service can review your situation, file or amend your returns, and help you minimize what you owe going forward.
📋 United Tax — Professional Online Tax Preparation
United Tax provides online tax preparation for individuals and small businesses across the United States. They offer a personal touch — real tax professionals who handle your return — at competitive pricing.
Who it’s for: Individuals or small business owners who want professional, hands-on tax prep without going into a physical office.
- Professional tax preparers — not just software
- Online process — no office visit required
- Handles individuals and small businesses
- Personalized service
- Higher cost than DIY software
- Turnaround time varies
Best for: Anyone who wants a real person handling their taxes — especially small business owners with complex situations.
Get Professional Tax Help with United Tax →Option 3: Do-It-Yourself Tax Software
If your tax situation is manageable and you’re comfortable doing your own return, quality DIY tax software can help you file accurately and catch deductions you might have missed. This is often the lowest-cost path for people with W-2 income, self-employment income, or investments.
We’ve reviewed the top tax software options in detail. Some let you file federal taxes completely free, while others offer tiered pricing for more complex situations:
- TurboTax — Best overall, most guided experience
- TaxAct — Best value for investors and self-employed
- FreeTaxUSA — Best free federal filing (including Schedule C)
- E-file.com — Best for fast, simple returns
👉 See our full tax software comparison →
Quick Comparison: Which Option Is Right for You?
| Your Situation | Best Option | Get Started |
|---|---|---|
| You owe the IRS and need a payment plan | 97tax | Try 97tax → |
| You want a professional to prepare your taxes | United Tax | Try United Tax → |
| You want to file your own taxes (simple return) | FreeTaxUSA or E-file.com | Compare Options → |
| You want maximum guidance and deductions | TurboTax or TaxAct | Compare Options → |
Before You File: Find Every Deduction You’re Entitled To
Whether you’re setting up a payment plan or filing fresh for next year, make sure you’re not leaving money on the table. Many taxpayers — especially freelancers, remote workers, and small business owners — miss deductions they’re fully entitled to.
🔍 Not Sure What You Can Deduct?
Use our free Tax Deduction Finder to see which write-offs apply to your situation — home office, vehicle mileage, medical expenses, and more.
Find My Deductions →