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Level 1
posted Sep 17, 2025 11:48:49 AM

I owe quite a bit for my 2024 taxes - I already filed and set up a payment plan. The amount I can afford right now seems to be barely covering the interest and penalties. What are my options to get out of this hole?

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1 Replies
Employee Tax Expert
Sep 17, 2025 12:43:22 PM

Managing back taxes can be difficult especially when there are other financial obligations.  But there are solutions to help balance and some can be used interchangeably.

 

1. Pay towards the bill when possible. This would have more go towards the principal balance.

2. Increase payroll withholdings so that the 2025 refund goes towards the 2024 bill.

3. Call the IRS to revise the installment amount 800-829-1040

4. Temporarily Delay the Collection Process

5. Submit an Offer in Compromise