On the day following the April 15 federal tax deadline, the IRS promoted a new online tool to help taxpayers understand and resolve tax debt.
The Tax Debt Help tool provides individuals and businesses with a simple, accessible way to explore payment options and identify next steps based on their situation, the agency said.
The tool is part of the IRS’s broader effort to expand digital services and to help taxpayers meet their obligations.
The most recent figures from 2022 show that the so-called tax gap—the difference between the taxes legally owed to the government and the amount paid—reached nearly $700 billion, according to the IRS.
The agency expected to eventually collect about $90 billion of that sum, leaving an outstanding gap of more than $600 billion.
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“This new Tax Debt Help tool reflects the agency’s commitment to making tax compliance clearer, more accessible, and less intimidating for taxpayers,” IRS CEO Frank Bisignano said in a statement on April 16. “By guiding taxpayers through their options to pay with simple, interactive questions, we’re helping them understand the paths available and take confident next steps. The deployment of this new tool shows the transformation underway at the IRS and the progress the agency has already made to deliver more user-friendly, digital-first services to taxpayers.”
The Tax Debt Help tool walks users through a series of straightforward questions about their financial situation and tax debt.
Based on taxpayer responses, the tool will guide them to potential payment and resolution options available through the IRS.
These options may include payment plans, temporary delay of collections, or an offer in compromise for those who qualify.
“By presenting options in a clear, structured format, the tool helps taxpayers make informed decisions about how to resolve their tax debt,” the IRS said in an April 16 media release.
The new tool is designed to be easy to use and accessible to a wide range of taxpayers. It doesn’t require specialized knowledge and can be used at any time, the agency said.
To protect taxpayer privacy, the tool doesn’t require taxpayers to enter personally identifiable information, such as Social Security numbers, names, or addresses.
“By expanding self-service options, the IRS is helping taxpayers resolve issues faster while reducing the need for phone calls or in-person visits,” the agency said.
Photo credit: Jason Bramwell
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Tags: debt resolution, Income Taxes, IRS, tax debt, tax debt tool, Taxes
