How to Stop IRS Collections Without Going Broke

If the IRS is coming after you, but you can’t afford to pay — you’re not alone.

One of the biggest myths about the IRS is that once they start collections, your only option is to pay in full or suffer the consequences. That’s not true.

There are real, legal ways to stop IRS collections — without wiping out your savings or living in fear of every paycheck.

Let’s talk about your options.

What Happens When the IRS Starts Collections

When you owe back taxes and don’t resolve them in time, the IRS can initiate collections. That includes:

• Wage garnishments

• Bank levies

• Tax liens

• Seizure of property (in extreme cases)

Before those things happen, the IRS sends notices — including a Final Notice of Intent to Levy. If you don’t respond within 30 days, they can move forward with collection actions.

But here’s the good news: Collections can be paused, reduced, or even stopped altogether — if you know what to do.

Option 1: Set Up a Payment Plan

If you can’t pay your full balance, the IRS will often let you pay in monthly installments.

✅ Installment Agreements are simple to set up and can protect you from wage garnishment — as long as you stay current.

✅ You don’t need perfect credit or thousands in the bank to qualify.

✅ In some cases, you can even apply online.

💡 Pro tip: Once you’re in an agreement, IRS collections stop — and you can breathe again.

Option 2: Request Currently Not Collectible (CNC) Status

If your financial situation is tight, you may qualify for Currently Not Collectible status — which pauses all collections until you can afford to pay.

While in CNC:

• No garnishments or levies

• No enforced collections

• Liens may still apply, but your paycheck and bank accounts are protected

It’s not permanent, but it gives you time to recover — and it’s a major relief for many struggling taxpayers.

Option 3: Submit an Offer in Compromise

If you truly can’t afford to pay your full balance — now or in the foreseeable future — you may be able to settle for less.

That’s called an Offer in Compromise, and it’s a real program — not a gimmick. But it takes:

• Strong documentation

• A realistic offer amount

• A clean compliance record

It’s not for everyone, but for the right person, it can erase tens of thousands in tax debt.

Option 4: Appeal IRS Action

If the IRS is moving too fast or made a mistake, you may have the right to file an appeal.

An appeal can:

• Delay collections

• Get your case reviewed by an independent IRS officer

• Help you negotiate more favorable terms

Appeals have strict deadlines — so if you're within 30 days of receiving a final notice, don’t wait.

Don’t Let Fear Keep You Frozen

You don’t have to pay everything at once. You don’t have to face the IRS alone. And most importantly, you do have rights and options — even if your tax debt feels overwhelming. If this sounds like you, you should download my FREE Anti Tax Survival Kit

Need Help Figuring Out the Best Path?

I help clients just like you stop collections, avoid garnishments, and build affordable resolution plans — every day.

Book your confidential Tax Strategy Session and let’s talk through what’s possible for you.