Short answer
The IRS uses the same rules for everyone, but why a balance builds up and which option fits depends on your situation. Self-employed people usually owe because nothing was withheld. People who lose a job or face a serious illness may qualify for hardship options. Business owners can be personally liable for payroll taxes. Pick your situation below.
Key takeaways
- The same payment plans, offers and hardship options are open to everyone; your situation changes which one fits.
- Self-employed people, gig workers and agents usually owe because no tax was withheld from their income.
- A job loss or serious illness is a reason to revise a payment plan or ask for hardship status before you miss a payment.
- Payroll taxes withheld from employees can become a personal balance for business owners, even after the business closes.
- Every guide here links to the IRS route you can use yourself, plus free help through the Taxpayer Advocate Service and Low Income Taxpayer Clinics.
Find your situation
Each guide below covers why balances happen for that group, what the IRS tends to do next, the options that usually fit, and the records to gather. Start with the one closest to you; most link to each other where situations overlap, such as a self-employed person who is also closing a business.
| Your situation | Common problem | Usual first step | Read next |
|---|---|---|---|
| Self-employed or small business owner | Personal and business balances, payroll taxes | Separate what is personal from what belongs to the business | Small business owners |
| Gig or rideshare driver | No withholding on platform income, 1099-K mismatches | Set aside tax from each payout and file even if you can’t pay | Gig workers |
| Owner-operator truck driver | Self-employment tax, heavy vehicle use tax, equipment at risk | Get current on estimates and protect working equipment | Truck drivers |
| Real estate agent | Uneven commissions, liens at closing | Match estimated payments to when commissions arrive | Real estate agents |
| Crypto investor | Unreported gains, matching notices | Reconcile every sale before the IRS does | Crypto |
| Recently lost a job | Payments you can no longer afford | Revise the plan or ask for hardship status before you miss one | After a job loss |
| Serious illness or medical bills | Paying would leave you unable to cover basics | Ask about hardship status and reasonable cause relief | Medical hardship |
| W-2 employee who still owes | Withholding set too low | Pay this year’s bill, then fix your Form W-4 | W-2 under-withholding |
| Closing a business | Final returns, trust fund taxes that follow you | File final returns and deal with payroll taxes first | Closing a business |
| Retired | Fixed income, Social Security levy risk | Ask about payment plans sized to retirement income | Seniors and retirees |
| Married or recently divorced | Joint liability for joint returns | Check whether innocent spouse relief applies | Divorce and IRS |
| Handling a parent’s estate | A balance left by someone who died | The estate pays, not heirs personally, in most cases | After a death |
| Construction contractor | Subcontractor 1099s, payroll taxes, levies on progress payments | Get payroll deposits current before anything else | Construction contractors |
| Restaurant owner | Tip reporting, payroll taxes, cash receipts | Reconcile tips and deposits, then file every payroll return | Restaurant owners |
| Online seller | Form 1099-K amounts, inventory, platform payouts | Match 1099-K totals to your sales records | Online sellers |
| Landlord | Rental income, liens on property, levies on rent | Separate rental records from personal ones | Landlords |
| Nurse, locum or therapist on 1099 | No withholding, worker classification | Set up estimated payments for each contract | Healthcare contractors |
| Farmer or rancher | Uneven income, the farmer estimated-tax rule | Check the farmer filing and payment dates | Farmers and ranchers |
| Minister or clergy | Dual tax status, housing allowance, self-employment tax | Start estimated payments or a withholding agreement | Clergy |
| Service member or veteran | Combat zone deadlines, SCRA, benefit levies | Check whether a deadline extension applies | Military and veterans |
| Widowed | A joint balance, a spouse’s unpaid taxes | Find out what you owe personally | Widowed |
| Student | Taxable scholarships, education credits, part-time jobs | Check which scholarship amounts are taxable | Students |
| On disability benefits | SSDI taxes, what the IRS can levy | Ask about hardship status if paying would leave you short | Disability benefits |
| Salon booth renter | Tips, cash, self-employment tax | Keep a daily record of services, tips and cash | Salon booth renters |
Your work and income
When no employer withholds tax, the bill arrives all at once at filing time. Self-employment tax adds to income tax, and missed estimated payments add an underpayment penalty. These guides cover the problems specific to each kind of work.
- Small business ownersPersonal vs business liability
- Gig and rideshare drivers1099-K, 1099-NEC and what to do
- Owner-operator truck driversWhat is different for truckers
- Real estate agentsCommission income, estimates and liens
- Crypto investorsDigital asset tax bills
- W-2 employees who still oweFixing under-withholding
- Owe after a 1099 year?Self-employment tax bills
- Construction contractorsSubs, payroll and progress payments
- Restaurant ownersTips, payroll taxes and cash
- Online sellers1099-K, inventory and payouts
- LandlordsRental income and levies on rent
- Nurses, locums and therapists1099 healthcare work
- Farmers and ranchersEstimates, levies and options
- Ministers and clergyDual status and housing allowance
- Salon booth rentersTips, cash and self-employment tax
- StudentsScholarships and part-time jobs
Life events
A balance that was manageable can become unmanageable after a job loss, an illness, a divorce or a death in the family. The IRS has specific options for each: revising a payment plan, temporarily delaying collection when you cannot cover basic living expenses, relief for a spouse who did not cause the balance, and rules on who pays a deceased person’s taxes.
- After a job lossHow to lower or pause payments
- Medical hardshipOptions when illness affects your ability to pay
- After a divorceWho owes a joint tax bill
- Married couplesHow joint returns affect relief
- Seniors and retireesRelief on a retirement income
- After a deathWhat the estate owes
- WidowedJoint returns and a spouse’s taxes
- Military and veteransCombat zone, SCRA and levy protections
- On disability benefitsSSDI, SSI and what the IRS can take
Running or closing a business
Business balances are where the stakes are highest. Payroll taxes withheld from employees are held in trust for the government, and the IRS can assess the Trust Fund Recovery Penalty against the people responsible for paying them. That penalty does not go away when the business closes.
- Small business ownersWho is liable for what
- Closing a businessWhat follows you personally
- Trust fund recovery penaltyWhen payroll taxes become personal
- Payroll tax reliefPayment options for businesses
- Levies on clients and receivablesHow the IRS collects from a business
- Construction contractorsPayroll taxes and subcontractors
- Restaurant ownersTip reporting and trust fund taxes
What to do next, whatever your situation
- Confirm the balance. Sign in to your IRS Online Account and see how to find exactly what you owe.
- File every missing return. Most relief options require it. See behind on filing.
- Match the balance to an option. Use relief by balance size or the eligibility checker.
- Watch the deadlines. If you have a final notice, follow the 30-day plan.
- Decide whether you need help. See when you don’t need a professional.
Frequently asked questions
The collection rules and relief options are the same. The difference is that no tax is withheld from self-employment income, so balances are more common, and the IRS can levy payments owed to you by clients.
Often, yes. You can ask to lower or pause payments, and the IRS can temporarily delay collection if paying would leave you unable to meet basic living expenses. Serious illness can also be reasonable cause for penalty relief.
It depends on the business structure and the tax. Sole proprietors are personally liable for business taxes. For corporations and LLCs, responsible people can be personally liable for unpaid payroll trust fund taxes.
Start with the one causing the most pressure right now, usually the one tied to a notice or a deadline. Each guide links to the related situations.
Many people can. If you owe $50,000 (IRS.gov, July 2026) or less, are current on filing and can pay over time, a Simple Payment Plan through IRS Online Account may be all you need.
Sources
- IRS: Self-employed individuals tax center
- IRS: Temporarily delay the collection process
- IRS: Trust Fund Recovery Penalty
- IRS: Simple payment plans for individuals and businesses
- IRS: Online account for individuals
We check every figure against IRS.gov and log changes on the key figures page.
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This page is general information about IRS rules, not tax or legal advice for your situation. IRS figures change; each one links to its official source and the date we last checked it.