Getting a letter from the IRS saying you owe money can be terrifying—especially if you live in North Carolina and don’t have the cash on hand. But before you panic, know this: You have options.

At Polaris Tax & Accounting, we help clients across Charlotte, Asheville, Huntersville, and Lake Norman resolve IRS balances, reduce penalties, and regain control.

Here’s what to do—and what to avoid—if you find yourself owing the IRS.

Step 1: Don’t Ignore the Notice

If the IRS says you owe money, read the letter carefully. Common notices include:

  • CP14 – First balance due notice

  • CP504 – Final notice before collection action

  • LT11 – Intent to levy (serious)

📌 Learn how to read your IRS notice and respond correctly »

Even if you disagree, ignoring it only leads to penalties, interest, and escalated enforcement.

Step 2: Confirm the Amount Owed

We often pull IRS transcripts for our North Carolina clients and find:

  • Payments weren’t applied

  • Notices are based on estimates

  • Prior returns were never processed correctly

📌 See how transcript review protects you »

Step 3: Evaluate Your Payment Options

If you owe under $50,000 and can’t pay in full, you may qualify for:

  • Installment Agreement (monthly payments)

  • Currently Not Collectible status (IRS pauses collections if you truly can’t pay)

  • Offer in Compromise (if you qualify to settle for less)

At Polaris, we evaluate your financials and recommend the most realistic path forward—without triggering unnecessary scrutiny.

Step 4: Avoid These Common Mistakes

  • ❌ Don’t blindly agree to pay in full if it will cause hardship

  • ❌ Don’t hire a national “tax relief” firm that makes promises but delivers nothing

  • ❌ Don’t assume your CPA knows IRS collections strategy—most don’t

Step 5: Plan Ahead to Avoid Repeat Issues

The #1 reason people owe again next year? No tax projections or adjustments.

We help clients:

  • Forecast income changes (side gigs, equity payouts, bonus income)

  • Adjust state and federal withholding

  • Make accurate estimated payments on time

📌 Understand how tax projections save more than a refund ever will »

Bonus: What If You Also Owe North Carolina?

The NC Department of Revenue can also assess penalties, garnish wages, and freeze accounts. We coordinate with both IRS and NCDOR to resolve state and federal balances in sync—so nothing falls through the cracks.

You’re Not Alone. We’ve Helped Hundreds of NC Clients.

Whether you owe $2,000 or $92,000, we’ve been there—and we’ve helped clients just like you avoid disaster, fix mistakes, and move forward with confidence.

📅 Schedule a confidential consultation now
We’ll pull your transcripts, review your IRS letters, and build a real solution that works for your life—not just the IRS’s.