When Should You Call the IRS? What to Know Before You Pick Up the Phone
- Suzanne Weathers
- Aug 1
- 4 min read
Updated: Aug 2
By Suzanne Weathers, EA
Solving Tax Problems
If you’ve confirmed you owe a federal tax debt, your first instinct might be to call the IRS right away. But timing matters. Calling too soon—or calling unprepared—can lead to confusion, unintentional disclosures, or even agreeing to something that doesn’t support your long-term financial stability.
Here’s how to know when it’s the right time to call—and what to have in place before you do.
THE IRS IS A COLLECTION AGENCY
It’s important to remember that the IRS Collection Division is not a neutral advisor. It is a collection agency, tasked with securing payment of your current and past-due tax liabilities.
When you speak with an IRS agent, they won’t just ask about your balance owed. If you qualify, the agent will calculate and present a minimum payment amount. If you can afford that minimum, it’s often best to agree and move forward. In fact, if you expect to enter a standard agreement, we recommend using the IRS Online Payment Agreement tool before calling.
However, if you cannot make the minimum payment stated, you’ll be expected to provide detailed financial information. If you’ve followed the earlier steps in this series, your income, expenses, and supporting documents should already be organized. Keep in mind: what you believe is affordable may differ from what the IRS calculates as your 'ability to pay.'
In some cases, special circumstances may allow you to exceed the IRS’s standard allowances for housing, food, transportation, and other expenses. If these apply, be prepared to discuss them and submit documentation by the agent’s stated deadline.
BEFORE YOU CALL: HANDLE THE CURRENT YEAR
Calling the IRS without addressing the current year’s taxes is like plugging a leak without turning off the water. The IRS wants to know that you’ve taken steps to avoid owing again next year.
If you cannot pay your 2025 tax balance by April 15, 2026, any new collection arrangement will default. Refunds for 2025 will be applied to past-due balances—and any shortfall will raise red flags. That’s why, before calling:
📌 Modify Retirement Contributions:
Consider temporarily reducing contributions to tax-deferred accounts like a 401(k) or traditional IRA. This may help increase cash flow available to cover your tax liability.
📌 Review Employer Deductions:
Re-evaluate deductions such as employer-sponsored child care, commuter benefits, or health savings accounts (HSAs). These programs reduce taxable income and can stretch your budget. Ensure you're maximizing tax-saving opportunities that also support your monthly financial plan.
📌 Increase Payroll Withholding:
If you’re a W-2 employee and owed taxes last year, submit a new Form W-4 to increase your federal withholding. Adjustments to other employer benefits can also free up funds for additional withholding, helping you cover your current-year obligations.
📌 Adjust Estimated Payments (Self-Employed):
If you receive 1099 income, make sure estimated tax payments are being made and documented. Even if payments haven’t been made yet, they must be included in your budget. You can schedule payments at irs.gov/payments. We recommend starting with monthly payments to maintain consistency.
WHAT THE IRS WILL ASK
Once you call, prepare for a financial interview. The agent may ask:
Your income (monthly or annual)
Your living expenses (housing, food, transportation, etc.)
Asset information (bank accounts, vehicles, retirement accounts)
Whether you've adjusted your withholding or started estimated payments
They will use this information to propose a collection alternative—which may include an installment agreement, currently not collectible (CNC) status, or in some cases, referral to a Revenue Officer.
If you have limited income, are struggling with basic expenses, and own no significant assets, there is little risk in calling. But organization is key.
STRATEGIC TIP FROM A TAX PRO
Don’t offer financial details casually.
These interviews are part of a collection effort. Be ready to demonstrate proactive steps—such as adjusting your W-4 or making estimated payments—and support them with documentation. If your paystub doesn't yet reflect your new withholding, bring a copy of your updated W-4. If you've started estimated payments, have banking records available.
In some cases, the agent may request the last 90 days of income and household bills. Expect this if you are requesting a payment plan below the calculated minimum.
WHEN TO WAIT
You should not call the IRS until:
All required returns have been filed
You have taken concrete steps to pay your current-year taxes
You’ve reviewed your budget and know what you can realistically afford
You understand your rights and your resolution options
After filing missing returns, you will begin receiving IRS notices. This process may take several weeks—but it also gives you time to get organized and implement financial changes. An agent cannot assist you with any payment arrangement until your tax is assessed and penalties are posted to your account.
BOTTOM LINE
Don’t call the IRS just to acknowledge your debt. Call when you are ready to get current—and stay current.
What you believe is affordable may not match what the IRS calculates. By preparing your financial records, reviewing your current tax situation, and understanding the process, you protect your future and gain more control over your resolution.s how to know when it’s the right time to call—and what to have in place before you do.
Coming Soon: Let’s Talk Taxes – Live Workshop
If you found this blog helpful, and you're certain with a little guidence you'll have clarity, control, and a clear action plan to handle your tax situation without the price tags you have been quoted - then you are at the right place.
Our upcoming workshop, “Let’s Talk Taxes: Solving Tax Problems with Confidence,” is designed specifically for individuals like you—not tax professionals— just wait until we dive in together.
We’ll walk through the IRS collections process, help you build your own tax debt timeline, and give you tools to confidently assess your resolution options.
📌 Understand what the IRS is doing and why
📌 Learn what paperwork to gather and when
📌 Explore realistic solutions without shame
📌 Leave with a personalized 3-step action plan
Stay tuned—registration opens soon! In the meantime, visit weathersassociates.com for updates or to download your free document checklist.
📞 (509) 994-8904 | contact us
📸 Photo Credit: Image by Yuri Krupenin on Unsplash
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