Expert-Approved Strategies for Negotiating Tax Debt

Published: Jun 26, 2025 4 min read

Tax debt is the kind of financial headache that keeps you up at night; staring at the ceiling, running numbers in your head. Maybe you've ignored the IRS notices piling up on the kitchen counter a little too long, or are staring at an unexpected tax bill you can’t afford to pay.

Navigating the next steps can be overwhelming, but there are a few expert-backed strategies to make the path out of debt less daunting.

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Installment Agreements

If you’re tired of checking your bank balance for funds that aren’t there, an installment agreement could give you the breathing room you need. This plan, offered by the IRS, breaks your debt into smaller, (more manageable) increments you can pay off over a period of months — or even years. Applying involves dealing with some red tape, including proving your ability to make regular payments. That’s where a tax relief provider like Anthem Tax Services comes in handy. Their expertise can help you navigate the application process and set up terms that work for your budget.

Offers in Compromise

If you owe more than you can realistically pay, you may be able to reduce your total debt through an offer in compromise. This is an even more rigorous process to navigate, since it essentially means convincing the IRS to settle for less. The upside: If you qualify, you’ll see your balance shrink to a figure you can handle. Like installment agreements, the right expert guidance can increase your chances of hitting that sweet spot between what you owe and what the IRS is willing to accept.

Don’t Overlook Penalty Relief

When the IRS tacks on penalties and interest, your bill can skyrocket in a hurry. But there’s often wiggle room for penalty relief if you can show reasonable cause or if this is first-time lapse. Still, it’s not as simple as sending the IRS a heartfelt apology: You’ll need thorough documentation and a clear argument for why you’ve failed to pay your bill — you’ve been caring for a sick family member, maybe, or have been dealing with the aftermath of a natural disaster. Here again, a professional tax relief provider like Anthem Tax Services can save you the headache of back-and-forth negotiations.

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Anthem’s Disclosures:

*Anthem offers a money-back guarantee designed to help you avoid wasting money on ineffective tax services. They will gather as much information from you as necessary and work with tax authorities to give you the best chance of reducing your tax debt. If for any reason that does not work out, and the government notifies them that they refuse to reduce your overall tax liability or monthly payments by any amount, they will refund you the fees you paid for their services in trying to reduce that debt. The Money Back Guarantee does not apply to Bookkeeping and Tax Preparation Services.

California Residents: Pursuant to Section 1798.120 of the California Consumer Privacy Act (CCPA), a consumer shall have the right, at any time, to direct a business that sells personal information about the consumer to third parties not to sell the consumer’s personal information. If you would like to exercise this right, please click the following link: Do Not Sell My Personal Information.