IRS letter help
The IRS tax relief programs that exist
You owe the IRS more than you can pay, and ads keep promising you a relief program.
The IRS has five real options, and an offer in compromise carries a $205 fee just to apply.
Call now and talk through which IRS option fits your numbers before you pay anyone.
Which numbers matter?
$205
An offer in compromise has a fee you do not get back, even if the IRS says no.
Check your numbers against the IRS formula before you mail Form 656.
3 prior years
If you filed and paid on time for three years, eligible penalties can come off without a request.
Call the number on any penalty notice that reaches you despite a clean record.
$50,000
Fresh Start raised the simple payment plan limit from $25,000 to $50,000 back in 2011 and 2012.
Ignore any ad that says you can enroll in Fresh Start today.
Pick the right IRS option first
An offer in compromise costs $205 to apply, and that fee does not come back if the IRS says no.
Pick the wrong option and you lose the fee, but a licensed tax professional can match your numbers to the right one.
Call now and go over a payment plan, an offer or penalty relief before you pay any company.
Call 855-964-5291What happens when you call
- You call during business hours and say which letter or bill you have.
- A licensed tax professional asks for the date, the amount and the tax years on the letter.
- You hear your options for this notice and decide what to do. Nothing is filed without your yes.
A licensed tax professional answers, not the IRS. The call costs nothing, and you give up nothing by calling. IRS Code Lookup is a private tax help service.
Would you rather send your notice details?
List your balance, your income and any IRS notice you hold about the debt.
Those details show whether a payment plan, an offer in compromise or penalty relief fits you.
What changed recently?
Since July 8, 2026, the IRS has an Automatic Exemption from Penalty for people with three years of on-time filing and paying. It starts with tax year 2025 returns and fully replaces First Time Abate for returns due on or after Jan. 1, 2027.
Source: IRS simplifies penalty relief (IR-2026-83).
What are the five real options?
| Option | What it does | Our page |
|---|---|---|
| Payment plan | Pay over time, short-term or monthly | Payment plans |
| Offer in compromise | Settle for less than you owe, if you qualify | Settling for less |
| Delay collection | Pause collection if you cannot pay now | Hardship status |
| Penalty relief | Remove penalties for a clean record or a good reason | Below |
| Other relief | Spouse's debt, disaster areas, military service, identity theft | Identity letters |
The list is from the IRS Get help with tax debt page.
What is penalty relief, and what changed in 2026?
The IRS announced on July 8, 2026 that it is replacing first-time penalty removal with automatic relief. The rule covers people who filed and paid on time for the three prior years. Their penalties on eligible returns from tax year 2025 on can come off without a request (IR-2026-83).
During the switch, some people who qualify may still get a penalty notice. If that happens, call the number on it.
Can I settle a tax debt?
"Tax settlement" in an ad means an offer in compromise. The IRS accepts one when the offer equals what it could expect to collect, and it charges a $205 fee to apply (IRS offer page). Our 2-minute check uses the IRS formula.
What do the ads mean by "Fresh Start"?
Fresh Start was a set of IRS changes from 2011 and 2012. It raised the limit for a simple payment plan from $25,000 to $50,000, according to a congressional summary. It is not something you enroll in today.
The FTC says businesses that tell you that you "qualify" for a tax relief program are making a promise only the IRS can keep. It warns against anyone who wants the whole fee upfront (FTC advice).
What should you read next?
Questions people ask
Does the IRS have a debt forgiveness program?
Not by that name. The closest is an offer in compromise, which settles for less if you qualify.
Is IRS Fresh Start still available?
It was a set of changes from 2011 and 2012, not a program you join. Its effects live on in today's payment plan limits.
Can I settle with the IRS myself?
Yes. You can file an offer in compromise yourself with Form 656 and the $205 fee.
What is the new IRS automatic penalty relief?
Starting in summer 2026, people with three clean prior years can get eligible penalties removed without asking.
Sources
- Get help with tax debt. Published by irs.gov.
- IRS simplifies penalty relief (IR-2026-83). Published by irs.gov.
- Offer in compromise. Published by irs.gov.
- IRS Fresh Start Initiative (congressional summary, 2012). Published by pingree.house.gov.
- FTC: Trouble paying your taxes?. Published by consumer.ftc.gov.
Last checked October 2026
What to do now
- Write down your total balance, your monthly income and your monthly costs.
- Compare a payment plan, an offer in compromise and hardship status against those numbers.
- Call the number on any penalty notice if you filed and paid on time for three years.
- Refuse any company that wants its whole fee upfront or says you qualify.
Call now and go over a payment plan, an offer or penalty relief before you pay any company.
A licensed tax professional answers, not the IRS. The call costs nothing, and you give up nothing by calling. IRS Code Lookup is a private tax help service.