Quick Answer:
If you can’t pay your IRS or NCDOR tax debt in full, don’t ignore it — you have options. You may qualify for a payment plan, an Offer in Compromise, or a temporary hardship status that stops collections. The sooner you act, the more solutions you’ll have to avoid garnishments, liens, and added penalties.

Why You Shouldn’t Ignore Tax Debt

Both the IRS and the North Carolina Department of Revenue have broad powers to collect unpaid taxes. Ignoring notices can lead to:

  • Wage garnishments

  • Bank account levies

  • Property liens

  • Seizure of assets

Your Options if You Can’t Pay

1. Installment Agreement
Pay your balance over time in monthly payments. The IRS and NCDOR offer short- and long-term options depending on the amount owed.

2. Offer in Compromise (OIC)
Settle your tax debt for less than the full amount if you can prove paying in full would cause financial hardship.

3. Currently Not Collectible (CNC) Status
If you can’t pay anything right now, you may qualify for a pause in collection activity.

4. Penalty Abatement
Reduce or remove penalties if you have a qualifying reason, such as illness or natural disaster.

5. Partial Payment Installment Agreement (PPIA)
Pay a reduced monthly amount until the debt expires under the statute of limitations.

How Polaris Tax & Accounting Can Help

  • We negotiate directly with the IRS and NCDOR on your behalf.

  • We review your finances to identify the most affordable resolution.

  • We handle all the paperwork and follow-up to prevent aggressive collection actions.

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If you can’t pay your IRS or NCDOR tax bill, Polaris Tax & Accounting can help you avoid the worst-case scenarios. Contact us today to start building a resolution plan that works for your budget.