Stressed About a Tax Bill You Can’t Pay? San Mateo County Folks, Here’s What to Know

Getting a surprise tax bill from the IRS can feel like a punch to the gut—especially if you’re not in a position to pay it all at once. If that’s you, take a breath. The IRS actually does offer options to help you manage the situation—and even reduce what you owe in some cases.

Let’s walk through the most common ways San Mateo County taxpayers can work with the IRS (yep, with—not against) to get things sorted.

Option 1: Set Up a Payment Plan

Can’t pay the full amount? No problem. You can ask the IRS for a payment plan and break up the total into monthly payments.

• If you can pay it off in 6 months or less, the short-term plan is simple—and there’s no setup fee.
• Need longer? A long-term plan (a.k.a. an installment agreement) gives you more time—up to 72 months in some cases.

You still pay interest and penalties, but this keeps the IRS from hitting you with garnishments or liens, as long as you stick to the plan.

Option 2: Can’t Afford the Full Amount? Look Into an Offer in Compromise

If paying your full bill would wreck your finances, the IRS might let you settle for less through something called an Offer in Compromise (OIC).

You’ll have to prove that paying in full would create real hardship—but in a place like San Mateo County, where living expenses are high, many people do qualify. Just know: the paperwork’s a bit heavy, and it helps to have a pro walk you through it.

Option 3: The Fresh Start Initiative = Better Odds of Getting Approved

The IRS knows people are struggling, which is why they launched the Fresh Start program. It makes it easier to qualify for payment plans and offers in compromise.

How it helps:

• Raises the limit on how much you can owe and still qualify
• Gives you more time to pay
• Updates how the IRS calculates what you can realistically afford (they now factor in regional cost of living)

Translation: if you live in a pricey area like San Mateo County, the rules are a bit more in your favor than they used to be.

Don’t Wait—The Sooner You Act, the Better

The IRS may be patient, but they’re not going away. If you wait too long, they will start collection actions like bank levies or wage garnishments.

Start by:

• Reading your notice carefully
• Gathering your financial info
• Figuring out which program might fit your situation

And if you’re not sure where to start? Talk to a local tax professional. They’ve likely helped other San Mateo County residents in the same boat and can guide you through the process step by step.

Bottom line: Tax problems don’t go away on their own—but they can be solved. And you don’t have to do it alone.

If you’re still stressed about your taxes, reach out to me. I’ll help you navigate your options and regain control.

Categorised in: Tax Service

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