IRS Tax Debt FAQ

Pay in full, Installment Agreement, Currently Not Collectible, Offer in Compromise, or letting the 10-year collection statute expire (CSED). The right one depends on your transcript, not a sales pitch.

Generally 10 years from the date of assessment (the CSED). Certain events like bankruptcy, an Offer in Compromise, or leaving the country can pause and extend that clock.

A formal settlement where the IRS agrees to accept less than the full balance based on your reasonable collection potential. Most self-filed offers get rejected because the math is done wrong.

Yes. After a Final Notice of Intent to Levy and a 30-day window, the IRS can garnish wages, hit bank accounts, and levy up to 15 percent of Social Security under the FPLP program.

Yes. Once the IRS certifies a debt as "seriously delinquent" (currently over about $65,000), the State Department can deny renewal or revoke your passport.

CNC (status 53) tells the IRS you cannot pay right now. Collection activity stops, but penalties and interest keep running and the CSED clock keeps ticking in your favor.

Often yes. First-Time Abatement and reasonable-cause relief can wipe out failure-to-file, failure-to-pay, and failure-to-deposit penalties if you meet the criteria.

Pre-marriage debt stays separate, but the day you file a joint return you both own that year's tax. Joint refunds can be seized, California community property expands what the IRS and FTB can reach, and injured spouse and innocent spouse relief are your two main protections.

Yes. High-balance IRS and California FTB defense for business owners and professionals owing $250,000 to $1 million and above. At this altitude the IRS assigns a Revenue Officer with authority over liens, levies, and asset seizures, and the FTB runs a parallel collection track. The order you defend matters.

Yes, if the failure was willful. IRC 7202 makes it a felony punishable by up to 5 years per count. Most payroll tax cases resolve civilly through the Trust Fund Recovery Penalty under IRC 6672, which makes owners personally liable for 100 percent of the withheld taxes.