Tax Law

File your return on time even if you can't pay, since the failure-to-file penalty is usually much larger than failure-to-pay. Then look into IRS options like a short-term extension, an installment agreement (payment plan), or, in hardship cases, an offer in compromise.

Yes. The IRS offers installment agreements, and many taxpayers who owe under a certain threshold can apply online. Interest and some penalties continue to accrue until the balance is paid, but a plan stops most aggressive collection.

Common flags include large or unusual deductions relative to income, unreported income (mismatched 1099s/W-2s), big charitable donations, self-employment losses, and math errors. Many audits are also selected by computer scoring or at random.

An offer in compromise lets you settle a tax debt for less than the full amount if paying in full would create genuine hardship or there's doubt about the amount owed. The IRS accepts these selectively based on your income, expenses, and assets.

Yes — after sending notices and a final notice of intent to levy, the IRS can garnish wages and levy bank accounts. Responding to notices and arranging a payment plan or other resolution usually stops or prevents a levy.