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Back Taxes Solutions

Comprehensive strategies for resolving years of unpaid back taxes.

Collection Statute10 years from assessment
Interest Rate~8% compounded daily
Penalty RateUp to 47.5% combined
Resolution OptionsOIC, IA, CNC, Penalty Abatement
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Talk To A Real Tax Attorney

One honest conversation. You'll hang up knowing exactly what the IRS can — and can't — do to you, and how we'll stop them.

Call (877) 829-5267
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Legally reviewed byGregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Last reviewed
What This Actually Is — And How We End It

The Truth About Back Taxes Solutions — And What To Do Right Now

Back taxes — unpaid taxes from previous years — don't go away on their own. The IRS adds penalties and interest that can quickly double or triple the original amount. But you have more options than you think.

McCauley Law Offices develops comprehensive strategies combining multiple resolution tools: Offers in Compromise, installment agreements, penalty abatement, and CNC status — whatever combination produces the best result for your specific situation.

Most people with back taxes actually have multiple resolution options available. We analyze each tax year independently — you might qualify for an OIC on older years, an installment agreement for recent years, and penalty abatement across the board. A layered approach typically saves our clients the most money.

How Back Taxes Grow Over Time

Understanding how the IRS calculates what you owe helps you see why acting sooner saves you money:

  • Failure-to-File Penalty: 5% per month on unpaid taxes, up to 25%
  • Failure-to-Pay Penalty: 0.5% per month on unpaid taxes, up to 25%
  • Interest: Currently ~8%, compounded daily on the entire balance including penalties
  • Combined effect: A $50,000 tax bill can grow to over $100,000 within 3-4 years
Interest on IRS debt compounds daily, not monthly. Every day you wait costs you money. Even if you can't pay the full amount, engaging with the IRS stops the bleeding and gives you access to resolution programs.

Resolution Strategies for Back Taxes

Offer in Compromise

Settle the entire debt for a fraction of what you owe. Best for taxpayers who genuinely can't pay the full amount based on their income and assets.

Installment Agreement

Pay over time in manageable monthly payments. We negotiate the lowest possible payment and explore partial-pay options where the statute expires before the balance is paid.

Currently Not Collectible

If you truly can't afford any payments right now, CNC status stops all collection. If the 10-year statute expires during CNC, the debt disappears.

Penalty Abatement

Penalties often make up 25-50% of a back tax bill. We pursue First-Time Abatement and reasonable cause arguments to strip penalties from your balance.

The 10-Year Collection Statute

The IRS has 10 years from the date of assessment to collect taxes. After that, the debt expires permanently. This is a powerful strategic tool — we calculate your CSED (Collection Statute Expiration Date) for each tax year and factor it into your resolution strategy. Some years may be close enough to expiration that it makes sense to wait them out rather than settle.

You Are Not Alone

People Just Like You Have Sat In This Exact Chair

They were terrified. They were ashamed. They thought they were the only one. Then they made one phone call — and everything changed.

10 Years of Back Taxes Totaling $280,000

A self-employed contractor owed $280,000 across 10 tax years. We filed all delinquent returns (reducing the assessed amount by $90,000), got penalties abated, and negotiated an Offer in Compromise for $18,000.

$340,000 Back Tax Liability Settled for $28,000

A Cherry Hill business owner with 9 years of liability and limited future earnings settled for an OIC of $28,000 — less than 10 cents on the dollar.

Old Liability Resolved by CSED Expiration

We mapped a Conshohocken client's CSED dates and moved him into CNC two years before the oldest year expired. Result: a $96,000 balance was permanently written off without payment.

IRS Notices

That Letter In Your Hand? Here's What It Really Means.

The IRS writes notices in code on purpose. If any of these landed in your mailbox, back taxes solutions is exactly how we fight back — and the clock is already ticking.

IRS CP14Balance Due Notice
Respond Promptly

This is the IRS's first notice telling you that you owe taxes. It shows the amount due, including any penalties and interest.

Deadline: 21 days

IRS CP501Reminder Notice
Take Action

A reminder that you have a balance due. This is a follow-up to the initial CP14 notice.

Deadline: 21 days

IRS CP503Second Reminder Notice
Respond Promptly

This is the second reminder that you owe taxes. The IRS is escalating their collection efforts.

Deadline: Immediate

IRS CP504Intent to Levy Notice
Urgent — Don't Delay

This is a final notice before the IRS seizes your assets. They intend to levy (take) your state tax refund and may seize other assets.

Deadline: 30 days

IRS LT11 / Letter 1058Final Notice of Intent to Levy
Critical — Act Now

This is the absolute final warning. The IRS will begin seizing your wages, bank accounts, and property within 30 days.

Deadline: 30 days

IRS CP49Refund Applied to Back Taxes
Take Action

Notice CP49 tells you the IRS used all or part of your tax refund to pay an old federal tax debt. If anything is left, you'll get it; if you still owe, the notice shows the remaining balance.

Deadline: 60 days to dispute

IRS CP59Unfiled Tax Return Notice
Urgent — Don't Delay

The IRS has no record of your federal tax return for a prior year and is asking you to file it. CP59 is the IRS's first formal step toward filing a Substitute for Return (SFR) on your behalf — which almost always overstates what you owe.

Deadline: Respond promptly (typically 30 days)

IRS CP71CAnnual Reminder of Balance Due (Passport Warning)
Urgent — Don't Delay

CP71C is an annual statement that you still owe back taxes and warns that the debt may be certified as 'seriously delinquent' — which can lead to passport denial or revocation by the State Department.

Deadline: No fixed deadline (passport risk is ongoing)

Every Day You Wait, The IRS Wins A Little More.

Penalties stack. Interest compounds. Legal options quietly disappear. One free call ends the spiral.

Call (877) 829-5267
From Panic To Peace Of Mind

Exactly How We Take This Off Your Shoulders

The hardest step is the first one. Everything after that, we carry for you. No surprises. No runaround. No lectures.

  1. 1

    Pull every transcript and compute the CSED

    We map every assessed year, balance, and the actual 10-year clock — sometimes time alone is the best leverage.

  2. 2

    Evaluate every resolution path

    Installment, partial-pay IA, CNC, OIC, bankruptcy — modeled side-by-side based on real numbers.

  3. 3

    Get current on filings

    No resolution sticks without current compliance. We file any missing returns first.

  4. 4

    Negotiate and execute

    Whatever path fits the facts, we file the package and follow through to acceptance.

  5. 5

    Maintain the resolution

    Stay-in-compliance monitoring so a single missed estimated payment doesn't unwind years of work.

4.9 out of 5
on Google

Trusted by Thousands of Taxpayers

Real results from real clients

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

"They stopped a wage garnishment within 48 hours and ultimately settled my case for pennies on the dollar. I can't recommend them enough."

"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

"As a small business owner, I was facing $250,000 in payroll tax debt. Their team negotiated an Offer in Compromise that saved my business."

"My ex-husband's tax fraud left me liable for $135,000. McCauley Law got full innocent spouse relief — I owe nothing. They gave me my life back."

"Facing criminal tax charges was the worst experience of my life. Gregory McCauley's defense was brilliant — charges reduced, no prison time. Forever grateful."

"The IRS had a lien on my home and was threatening seizure. McCauley Law negotiated a manageable payment plan and got the lien subordinated so I could refinance."

"Professional, knowledgeable, and responsive. They explained every step of the process and kept me informed throughout. Resolved my $92,000 tax debt for $8,500."

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

"After years of IRS letters and threats, Gregory and his team got my penalties completely removed. They were professional, responsive, and genuinely cared about my case."

"They stopped a wage garnishment within 48 hours and ultimately settled my case for pennies on the dollar. I can't recommend them enough."

"I hadn't filed taxes in 5 years and was terrified. McCauley Law handled everything — filed all my returns, negotiated with the IRS, and got my penalties reduced by 80%."

"As a small business owner, I was facing $250,000 in payroll tax debt. Their team negotiated an Offer in Compromise that saved my business."

"My ex-husband's tax fraud left me liable for $135,000. McCauley Law got full innocent spouse relief — I owe nothing. They gave me my life back."

"Facing criminal tax charges was the worst experience of my life. Gregory McCauley's defense was brilliant — charges reduced, no prison time. Forever grateful."

Google Review

"McCauley Law resolved my $180,000 IRS debt for a fraction of what I owed. I was facing wage garnishment and bank levies — they stopped everything and negotiated an incredible settlement."

RM

Robert M.

Philadelphia, PA

1 / 5

FAQs

The Questions Keeping You Up At Night — Answered

IRS Forms You May Need

The Paperwork Behind Back Taxes Solutions

Step-by-step guides — including who files, mailing addresses, and the mistakes that get applications rejected.

Browse every IRS form guide

One Phone Call. Or Another Sleepless Night.

Stop Letting The IRS Own Your Mornings.

You already know what happens if you do nothing. Pick up the phone for a free, confidential conversation with a real tax attorney — 30+ years inside the IRS playbook — and finally start fighting back.

Call (877) 829-5267 Now
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