On April 16, 2026, the IRS announced a new online tool called Tax Debt Help (IRS news release IR-2026-53). It is meant for individuals and businesses that owe federal tax and aren't sure what to do next. The tool walks you through a short series of questions about your finances and your tax debt. Based on your answers, it points you to payment and resolution options the IRS offers.
What the tool does
According to the IRS, the options the tool may suggest include:
- Payment plans, short-term or long-term (an installment agreement). See our guide to IRS payment plans.
- A temporary delay of collection, which the IRS grants when paying would cause hardship. Our guide calls this currently not collectible status.
- An offer in compromise, which settles a tax debt for less than the full amount for those who qualify.
The IRS says the tool needs no special knowledge and is available any time. To protect privacy, it doesn't ask you to enter information that identifies you, such as your name, Social Security number or address.
What it doesn't do
The tool is a guide, not an application. It doesn't set up a payment plan, stop a levy or change your balance. Once you know which option fits, you still have to apply. You can use your IRS Online Account or the online payment agreement application, call the number on your notice, or mail the right form.
It also can't tell you whether the balance is correct. Before choosing an option, compare the amount on your notice, such as a CP14 or CP501, with your IRS Online Account and your own records.
Payment plan costs as of October 2026
The IRS payment plans page, last updated March 3, 2026, lists these setup fees:
| Plan | Online | By phone, mail or in person |
|---|---|---|
| Short-term (180 days or less) | $0 (individuals only online) | $0 |
| Long-term, automatic bank payments (direct debit) | $29 | $107 |
| Long-term, other payment methods | $69 | $178 |
Low-income taxpayers pay no setup fee for direct debit plans. Other plans cost them $43, which may be reimbursed if certain conditions are met. Interest and the failure-to-pay penalty keep running until the balance is paid. For the fourth quarter of 2026, the IRS interest rate on unpaid individual tax is 7% a year, compounded daily (IRS, IR-2026-98).
When to act quickly
If you've already received a CP504 or a final notice such as an LT11, deadlines matter. An LT11 gives you 30 days to request a Collection Due Process hearing. That is a chance to have an independent IRS Appeals officer review a proposed levy and consider options like a payment plan. Don't let exploring the tool use up that time. See collection due process hearings and what to do if you can't pay.
If you're dealing with financial hardship or the IRS isn't responding, the Taxpayer Advocate Service may be able to help. Be cautious of companies advertising that they can settle tax debts for "pennies on the dollar." The IRS's own tools and free help are a better first step.
Frequently asked questions
Do I need an IRS Online Account to use Tax Debt Help?
The IRS says the tool doesn't require personal identifying information. To actually apply for a payment plan online, you generally sign in to your IRS Online Account or use the IRS's online payment agreement application.
Will using the tool stop collection?
No. Only an action such as applying for a payment plan, requesting a collection delay or filing a hearing request affects collection. The tool helps you pick which one to pursue.
Can businesses use the tool?
Yes. The IRS says it serves both individuals and businesses. Businesses can also view payment plan details and make payments through the IRS Business Tax Account.
Sources
IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.
