A financial readiness checklist for tax debt

1. Make a one-page balance summary

Use one line for each tax year. Record the agency, the amount shown on the latest notice, the notice date, and the next action requested. If two notices show different amounts, keep both rather than deciding that one is wrong. Label information you have not verified.

• Tax year and return type
• Notice number, notice date, and response date
• Amount shown, with the date it was quoted
• Payments already made and the records supporting them

2. Outline monthly cash flow

Gather recent income records and an overview of essential expenses. A rough outline is a preparation tool, not an official collection statement. Do not treat an amount left over in your personal budget as proof that you qualify for a particular program.

For fluctuating income, note the range and timing. If a job, household expense, or health situation changed recently, write down what changed and when. Keep factual details separate from assumptions about future income.

3. Keep filing questions beside payment questions

A tax balance and an unfiled return are different issues. Create a separate list of years you filed, years you believe are missing, and years you are unsure about. The IRS past-due filing page explains how to approach overdue returns. A professional can help you confirm your own filing obligations.

4. Learn the names before comparing paths

A payment plan provides time to pay. An offer in compromise involves an IRS review of eligibility and finances. Those descriptions do not tell you which path applies to your situation. Ask what other options should be considered and why a proposed approach fits the verified facts.

Confirm current requirements using the official sources below. Do not build your plan around an advertised percentage reduction or a result achieved by someone with different finances.

5. Take these questions to a provider

• Who will review my records, and what qualifications do they hold?
• Which steps are included in the quoted fee? Which could cost more?
• What must be verified before you can discuss possible options?
• How will you communicate updates and important deadlines?
• What written terms apply if I decide not to continue?

6. Keep control of sensitive records

You can use this guide without uploading anything to TaxDime. Before giving a provider account details or documents, confirm its identity and ask about the secure channel it uses. Keep your own copy of any agreement and any agency submission.

For a service conversation, call Republic Tax at (855) 494-5639. The call is an independent advertising referral. Ask the provider to explain its process and terms; this guide does not promise a particular outcome.