IRS Launches Free Online Tool to Help Taxpayers Resolve Tax Debt

The IRS released a free Tax Debt Help tool on April 16, 2026, giving taxpayers a self-service way to identify which debt resolution programs fit their situation without providing a Social Security Number or creating an account. The tool covers installment agreements, offers in compromise (OIC), and temporary hardship delays, and it was timed to reach the millions of taxpayers who filed by the April 15 deadline and discovered they owe a balance. If you owe taxes and are not sure where to start, this is the IRS’s first anonymous, no-login tool built to walk you through your options step by step.

What Happened?

The IRS announced the Tax Debt Help tool on April 16, one day after the filing deadline. The tool asks a series of plain-language questions about your financial situation and outstanding balance. Based on your answers, it identifies which IRS resolution programs you may qualify for and directs you to the next step for each one.

No Social Security Number, name, address, or any other personally identifiable information is required. There is no login, no account creation, and no fee. You can explore your options privately before contacting the IRS or engaging a tax professional.

Until now, taxpayers who wanted to understand their IRS payment options had to call the IRS directly, use the IRS Online Account (which requires identity verification), or piece together eligibility requirements across multiple IRS.gov pages on their own. The Tax Debt Help tool consolidates that process into a single guided workflow.

What Payment and Resolution Options Does the Tool Cover?

The tool evaluates your situation against three IRS programs. Here is what each one involves and who it is designed for.

What Is an Installment Agreement?

An installment agreement lets you pay your tax debt in monthly payments over time. The IRS offers several types depending on the amount you owe and how quickly you can pay.

Plan Type	Balance Threshold	Setup Fee	Key Detail
Short-term (180 days or fewer)	$100,000 or less	$0 (direct debit or check)	Interest and penalties continue to accrue
Long-term (monthly payments)	$50,000 or less ($100,000 with direct debit)	$22 to $107 (varies by method; reduced for low-income)	Failure-to-pay penalty drops from 0.5% to 0.25% per month

You can apply for an installment agreement through your IRS Online Account or by filing Form 9465.

What Is an Offer in Compromise?

An offer in compromise (OIC) lets you settle your tax debt for less than the full amount owed. The IRS accepts an OIC when it determines the offered amount represents the most it can reasonably expect to collect.

The IRS calculates your Reasonable Collection Potential (RCP) based on your income, expenses, assets, and future earning ability. If the math shows you genuinely cannot pay the full balance, the IRS may accept a lower amount.

To apply, you file Form 656 with a $205 application fee and an initial payment. Low-income taxpayers are exempt from both the fee and the initial payment. All tax returns must be current before the IRS will review your offer. The review process typically takes several months and can stretch to a year or more.

The IRS also offers a separate OIC Pre-Qualifier tool that runs a more detailed financial analysis before you submit a formal application.

What is the ‘Currently Not Collectible’ Status?

If you cannot pay anything right now and paying would create a genuine financial hardship, the IRS may place your account in Currently Not Collectible (CNC) status. This temporarily pauses collection activity, including levies and liens.

CNC status does not erase the debt. Interest and penalties continue to accrue, and the IRS will periodically review your financial situation to determine whether your ability to pay has changed. However, it provides breathing room if you are facing an immediate hardship, such as job loss, a medical emergency, or a period between contracts.

To request CNC status, you typically contact the IRS directly and provide documentation of your financial situation. The Tax Debt Help tool can help you determine whether this option may apply before you make that call.

Who Does This Affect?

Anyone who filed and owes a balance they cannot pay in full – the tool was released the day after the April 15 deadline, specifically for this group, and it is the first IRS self-service path that does not require a phone call or account login
Americans abroad catching up on prior-year returns or using the Streamlined Filing Compliance Procedures – if you are working through back taxes or entering the Streamlined program, this tool can help you map which payment path applies before you file
Self-employed expats and freelancers with unexpected self-employment tax liability – if your self-employment tax bill was higher than expected after filing, the tool can show whether an installment agreement or other option fits your situation
Retirees abroad with pension or investment income that created a surprise balance – foreign pensions and investment gains can generate U.S. tax liability even after applying treaty benefits, and the tool helps identify repayment options without calling the IRS
First-time filers or accidental Americans who recently learned they owe – if you just discovered your U.S. filing obligation and the return produced a balance, the tool provides a low-pressure starting point for exploring next steps
Anyone weighing whether an offer in compromise is worth pursuing – the tool walks you through preliminary eligibility without requiring you to submit a formal application or pay the $205 OIC fee

What Does This Mean for U.S. Taxpayers Abroad?

The tool is useful, but it is a starting point. It identifies which IRS programs may apply to your situation. It does not file applications, set up payment plans, or negotiate on your behalf. You will still need to take the next step yourself or work with a tax professional.
Expats face layers that the tool does not address. The Tax Debt Help tool is built for general U.S. taxpayers. It does not factor in the Foreign Earned Income Exclusion, Foreign Tax Credit, treaty benefits, or FBAR obligations. If your tax debt stems from unreported foreign income or missed international forms, the resolution path may be more nuanced than what the tool suggests.
Interest is already running on unpaid balances. If you owed taxes as of April 15 and did not pay in full, interest is accruing at the current IRS rate regardless of whether you have an extension to file. The failure-to-pay penalty is 0.5% of the unpaid balance per month, and interest compounds daily. Using the tool sooner rather than later helps you identify the right program before those charges grow.

What Should You Do Next?

If you filed on time but owe a balance you cannot pay in full, use the IRS Tax Debt Help tool to see which payment options apply to your situation. If an installment agreement is a good fit, you can set one up directly through your IRS Online Account.
If you are behind on multiple years of returns, get current on your filing first. The IRS generally requires all returns to be filed before approving an installment agreement or offer in compromise. The Streamlined Filing Compliance Procedures may be the right starting point if you qualify.
If you are self-employed abroad and owe self-employment tax, review whether a totalization agreement with your country of residence applies. If the balance remains after credits and exclusions, the IRS tool can help you explore payment options.
If you think you may qualify for an offer in compromise, use the IRS OIC Pre-Qualifier tool for a more detailed financial analysis. Before submitting a formal application, consider having a tax professional review your case to confirm the OIC is the best path. Our OIC guide explains how the process works and what the IRS evaluates.
If you are not sure what you owe or whether you need to file, start with our guide to late filing or back taxes for expats to get a clear picture of your obligations before using the IRS tool.

For complex situations involving foreign income, multiple years of unfiled returns, or international reporting forms, a specialist who works with U.S. expats every day can evaluate your full picture and recommend the right resolution before you commit.

Your Situation May Be More Complex Than the Tool Covers

Greenback helps expats with foreign income, missed filings, and international forms find the right resolution path.

The information in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax rules are complex and change frequently. Consult a qualified tax professional regarding your specific situation before taking any action.