Anthem Tax Services
Save up to 99% on IRS debt with help from a trusted tax professional.
If you’ve fallen into tax-related debt, you’re far from alone. In fact, 17% of income taxes go unpaid each year, according to Debt.org, which works out to a whopping $114.2 billion in taxes owed by Americans.
The IRS tacks a 5% failure-to-file penalty onto your outstanding balance for up to five months, to a maximum of 25%. There is also a monthly penalty of 0.5%, which scales to 25% of the amount owed. If you fail to file and pay, the combined monthly penalty is 5%.
On top of that, your unpaid taxes accrue interest at the federal short-term interest rate plus 3%. The current quarterly rate is 7%, and interest compounds daily.
The American tax system is a regulatory maze, but with a tax relief professional in your corner, you can cut through the noise to re-secure your financial future.
For example, the tax specialists at Anthem Tax Services can help you negotiate with the IRS. Anthem’s experts can help ensure that you’re paying within your means and staying as safe as reasonably possible from collections. They also offer a 100% money-back guarantee if you don't save on your tax bill.
Even better, the tax professionals at Anthem will be right there with you in your call with the IRS to ensure everything moves as smoothly as possible.
While all this may feel overwhelming, there are several strategies they can help you use use to ease your tax burden, get out of debt faster and avoid wage garnishment or tax levies.
Here are five strategies to help reduce your tax burden:
Anthem Tax Services
Save up to 99% on IRS debt with help from a trusted tax professional.
Set up a payment plan
You may be able to set up a payment plan that allows you to pay your tax debt in installments over time.
For instance, Long-term payment plans can be an option if you owe up to $50,000.
You will make monthly payments, but interest will still accrue on your outstanding balance. You’ll also continue to pay the failure-to-pay penalty. However, it could be reduced to 0.25%.
Those owing up to $30,000 may qualify for a “streamlined” payment plan, which means the IRS won’t probe your current financial situation.
This gives you six years to pay off your tax-related debt with a minimum payment of about $415 a month — though you can always make larger payments if you can find the extra cash.
If you owe more than $50,000, Anthem Tax Services may be able to help. Anthem’s average client owes about $60,000 in debt, placing them just outside the long-term payment plan offered by the IRS. In the last year alone, Anthem Tax Services has resolved $230 million in debt for more than 6,000 taxpayers.
Keep in mind that if you can’t make your minimum monthly payments, you may have to consider borrowing money through a line-of-credit or home equity loan. This can get complicated — plus you don’t want to dig yourself deeper into debt — so it may make sense to work with a tax expert to guide you through this process.
Anthem Tax Services
Save up to 99% on IRS debt with help from a trusted tax professional.
Make an offer in compromise
If you’re willing to enter into an installment agreement but can’t meet the deadline, you may want to consider an offer in compromise (OIC).
This involves negotiating a settlement with the IRS for an amount less than what you owe. You’ll have to prove that you can’t meet the deadline, which means providing information on your income, assets, liabilities and living expenses.
Usually, an OIC applies under two conditions. The first is if you’re disputing the amount of tax debt you owe, known as “doubt as to liability.” The second is if your income and assets are less than the amount of the debt, or “doubt as to the collectability.”
The IRS may also approve an OIC if paying the full amount would create significant economic hardship. Working with a tax relief professional can help you determine your eligibility and negotiate the best deal for an OIC.
Ask for an extension for undue hardship
Speaking of hardships, you may be able to apply for an extension if paying back your tax debt would cause “undue hardship.”
In other words, you need to prove that paying your debt would leave you without the ability to cover basic living expenses.
If an extension is approved, this gives you “currently not collectible” status. But this isn’t indefinite. Usually, you have no longer than 18 months to pay back your tax debt, but late fees will be waived at least.
If you don’t have the time (or energy) for this legwork, consider working with a tax expert who can serve as a mediator between you and the IRS.
Anthem Tax Services
Save up to 99% on IRS debt with help from a trusted tax professional.
Get tax debt relief after a natural disaster
If you’re the victim of a natural catastrophe — like a wildfire, flood or hurricane — you probably aren’t thinking about your tax bill.
Fortunately, tax debt relief may be available if you live in a federally declared disaster region. If the IRS offers an automatic extension, this allows you to pay any outstanding taxes at a later date. The National Centers for Environmental Information keeps track of disaster areas, such as the Los Angeles wildfires in 2025 or Hurricane Milton in Florida in 2024.
Work with an expert
If all of this seems overwhelming, consider working with a tax relief professional who can provide expertise and support — and the confidence to take action.
The experts at Anthem Tax Services are one such specialized service.
With a Better Business Bureau rating of A+, you can rest easy knowing that someone has your back to chart a course back to some stability. Anthem’s team is knowledgeable about much more than IRS settlements, bank levies, wage garnishments or lowering your tax debt. They also offer bookkeeping and tax preparation services so you can keep ahead of the curve after dealing with debt relief. Their 100% money-back guarantee if you don't save adds an extra layer of confidence.
While receiving a massive tax bill might feel like your worst nightmare, proactively seeking a solution with the IRS can help avoid severe penalties.
If you are struggling with tax debt and unsure of what to do next, reach out to Anthem Tax Services for help today.
