IRS creates online tax debt tool

The Internal Revenue Service introduced an online Tax Debt Help tool Thursday, the day after the tax deadline, to help taxpayers  understand and resolve their tax debts.

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The new resource on IRS.gov aims to give individuals and businesses a simple way to explore their various payment options and select the next steps based on their situation. The tool is part of the IRS’s wider effort to expand digital services and help taxpayers meet their obligations.

“This new Tax Debt Help tool reflects the agency’s commitment to making tax compliance clearer, more accessible, and less intimidating for taxpayers,” said IRS CEO Frank Bisignano in a statement. “By guiding taxpayers through their options to pay with simple, interactive questions, we’re helping them understand the paths available and take confident next steps. The deployment of this new tool shows the transformation underway at the IRS and the progress the agency has already made to deliver more user-friendly, digital-first services to taxpayers.” 

Helping taxpayers find the right option

The Tax Debt Help tool guides users step by step through a number of questions about their financial situation and tax debt. Based on their responses, the tool will guide them to potential payment and resolution options that they can get through the IRS.

The options may include payment plans, temporary delay of collections, or an offer in compromise for those who qualify. The structured format can help taxpayers make informed decisions about how to resolve their tax debt without needing to resort to sometimes exploitative tax debt resolution services. 

The tool doesn’t require specialized knowledge and can be used anytime. To protect taxpayer privacy, the tool doesn’t require taxpayers to enter personally identifiable information. Taxpayers can explore their available options without entering details such as Social Security numbers, names or addresses. 

By expanding self-service options, the IRS is helping taxpayers resolve issues faster while reducing the need for phone calls or in-person visits. 

Bisignano testified Wednesday before the Senate Finance Committee about this past tax season, and the IRS’s efforts to expand such online tools. “We are building an IRS that leverages advanced technology, empowers its workforce with better tools, and delivers secure and easily accessible services,” he said.