Owe the IRS more than you can pay

General information about Illinois law as of October 23, 2026. It is not legal advice for your situation, and reading it does not create an attorney-client relationship.

What does an offer in compromise cost to apply for?

The application fee is $205. With a lump sum offer you pay 20% of the offer amount when you apply. Individuals who meet the IRS low-income rules pay neither. If the IRS rejects the offer, the fee is not returned. Among the conditions, you must have filed all required returns and made required estimated payments.

What does an IRS payment plan cost?

A short-term plan, paid off in 180 days or less, has no setup fee. A long-term plan paid by automatic withdrawal costs $29 to set up online or $107 by phone, mail or in person; paid any other way it is $69 online or $178 otherwise. Low-income taxpayers pay less or nothing. Penalties and interest continue until the balance is paid (IRS).

How long can the IRS collect a tax debt?

Generally 10 years from the date the IRS assessed the tax. Each assessment has its own date, called the Collection Statute Expiration Date, and some events stop or extend the clock (IRS). Asking for a payment plan or making an offer in compromise is one of them.

Should I file my return if I cannot pay?

Yes. The failure to file penalty is 5% of the unpaid tax for each month the return is late, up to 25% (IRS). The failure to pay penalty is a tenth of that, and for an individual who filed on time it drops to 0.25% a month during an approved payment plan.

Can a lawyer deal with the IRS for me?

Yes. Form 2848 authorizes a person eligible to practice before the IRS to represent you, and attorneys are eligible under the Treasury's rules for practice, 31 CFR 10.3. Once Rick's Form 2848 is on file for your account, the IRS can discuss it with him.

When to call Rick

Call Rick when the IRS letters start. Rick works with the IRS on payment plans, installment agreements and offers in compromise. See IRS tax negotiations or call (815) 986-1569.