For millions of people, tax season is over. They’ve filed their returns and have already received their refunds. And now they’re looking forward to a big purchase or vacation funded with that payment. As of April 11, the average refund amount was $3,055, based on the nearly 75 million refunds issued at that point, totaling about $229 billion. If you have a personal finance question for Washington Post columnist Michelle Singletary, please call 1-855-ASK-POST (1-855-275-7678) But others face a different reality: A looming tax debt, compounded by interest and penalties. They know they can’t pay and have opted not to file, gambling that their noncompliance will remain undetected while they seek a solution for their outstanding balance. This is where scammers and opportunists step in. They know many people are desperate for a way to reduce their tax debt. Here’s what you should and should not do if you owe the IRS. Contact the IRS For tax year 2022, the most recent year with complete data, just over 1 in 4 filers had balances due with their returns, according to IRS spokesman Eric Smith. On average, they owed nearly $6,800.
For most taxpayers, these are hefty bills. Unable to pay and fearing the wrath of the IRS, your instinct might be to do anything except contact the agency. 💰 Follow Personal finance Follow But there’s good reason to contact the IRS, especially if you receive a notice or letter. Skip to end of carousel Help me report on DOGE fallout Are you a federal worker, contractor or small business that’s been financially impacted by DOGE activities at federal agencies? If you want to tell your story, contact me by email at [email protected] or @MichelleSingletary.29 on Signal, an encrypted messaging system. Read more about how to use Signal and other ways to securely contact The Post. End of carousel That was the case with a person I once helped. During the coronavirus pandemic, he tried to contact the agency but didn’t get through to anyone. Later, when I encouraged him to renew his efforts, there was a notation in his tax record that he had attempted to reach someone.
The revenue officer assigned to his case said this worked in his favor. When you call the agency’s toll-free line (800-829-1040), prepare for a long wait for help. If you’re comfortable with doing things online, use the online payment plan application at irs.gov. You can set up a plan free or at a minimal cost. You may qualify for an installment agreement to pay off your outstanding balance over time, including any penalty and interest. “Most people qualify for this option,” Smith said. Avoid debt-relief companies If you feel you can’t handle a collection issue on your own and need the services of a tax professional, do some research to find a reputable person. But don’t contact a company you heard about on the radio or a television commercial. You could end up paying hundreds — if not thousands — of dollars to the firm for something you could have done yourself by going straight to the IRS. In an even worse case, you might be scammed. Here’s what happens based on interviews with people who were swindled. You call. Someone takes your information. You are asked to send your tax documents — W-2 forms, 1099s, etc. More from Michelle Singletary Next You missed the tax filing deadline. Now what? You missed the tax filing deadline. Now what? April 16, 2025 Tariffs may have you worried, but don’t go stockpiling toilet paper Tariffs may have you worried, but don’t go stockpiling toilet paper April 11, 2025 Will the IRS even notice if you don’t file taxes? Answers to your tax questions. Will the IRS even notice if you don’t file taxes? Answers to your tax quest...
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March 6, 2025 How to handle the stress of tariff escalation and stock market jitters How to handle the stress of tariff escalation and stock market jitters March 5, 2025 Consumers need the CFPB. Remember the Great Recession? Consumers need the CFPB. Remember the Great Recession? February 28, 2025 You sign a contract agreeing to pay several thousand dollars, including interest. To make it easier to pay, you’re put on a monthly payment plan. Then you wait. And wait. And wait. You call the debt-relief company. You’re told they’re still processing your application, or that they’re waiting for a response from the IRS. Or you never reach a human again. And then you realize it was a scam, and the money you’ve been conned out of could have been used to pay down your tax debt in a payment plan set up directly with the IRS. Beware of schemes involving an ‘Offer in Compromise’ Debtors, out of fear or desperation, are often drawn to the commercials promising too-good-to-be-true tax debt deliverance. The companies claim they have a “team of experts” who can help you escape most of your tax obligations, including penalties.
You may not realize that these promises often involve an “Offer in Compromise,” or OIC. Although this is a legitimate IRS program, it’s intended to help people experiencing economic hardship who are unlikely to pay their debt in full. For years, the IRS has warned about exploitative “mills,” in which companies don’t adequately disclose how tough it is get an OIC approval and that most people don’t meet the qualifications.