So you owe the IRS a lot of money? Here’s what to do.

Warm temps and patio happy hours are on the horizon, so you know what that means: It’s time to play the IRS’s favorite twisted (and forced) guessing game: We’re going to make you figure out how much you owe us in taxes, even though we already know! 

If you aren’t super financially savvy — which, if you graduated from the US school system, where learning to square dance took precedence over financial literacy, might be the case — that lack of knowing might feel anxiety-inducing. And if you discover you actually owe the IRS an eye-popping amount of money, this stress can quickly turn suffocating. 

If that’s the case for you this year, know that you’re not alone, Lee Frisari, a New York City-based tax adviser and co-founder of Hell Yeah Taxes, tells Vox. “The tax system is broken in ways that burn people for doing well and burn them for struggling,” he says. “Everybody’s navigating their own version of the same fight.” 

Importantly, Frisari adds, getting a hefty tax bill doesn’t mean you did anything wrong  — and there are plenty of ways to dig yourself out. Here’s exactly what to do if you owe a lot to the IRS this year. 

1) Do absolutely nothing for a few days

If the IRS is demanding that you pay a four — or, gasp, five! — figure amount, you might start to panic. That’s a completely normal, human reaction, Aja Evans, a New York City-based financial therapist, tells Vox. Money worries can invoke something very primal within us, because it’s so closely tied to our sense of safety and security. “I want to know that I can take care of my kids or my aging parents. … If you do not have the money to do that, that is very triggering,” Evans says. 

(By the way, if your immediate fear is that you’re going to be carted off in handcuffs, know that there’s an extremely slim chance you’d go to jail over all this, Frisari says. “The IRS doesn’t want to destroy lives; it wants its share,” he says. “There are so many steps and opportunities to course-correct before it ever gets there.”)

Evans says that getting a hold of your emotions before making any big decisions about how you’ll pay what you owe is absolutely crucial. “Please, please do not move your money or do anything with your money when you are stressed out or feeling like you are in crisis,” she says. “You do not need to do anything right this moment. You need to calm down and get your body out of fight-or-flight and…into regulation so that you can plan.” 

What does that look like? Evans says it can be different for everyone, but engaging in some deep breathing exercises or meditation is a solid start. Beyond that, Evans says that getting outside (touch grass — literally!)  is another good idea, as short walks in nature can tamp down anxiety. Putting on your comfort show or favorite album can also help. 

The other important thing, Evans says, is to temporarily mute any finance-related apps until you can feel your body coming out of that danger zone. “The second you open your bank account or credit card statement, the anxiety can be very quick,” she says. 

2) Understand that owing money is completely normal

Try to be gentle with yourself when facing a sky-high IRS bill. A lot of adults simply don’t know how to navigate this stuff, and you’re doing the best you can with the information you have. “One of our favorite ways as humans to deal with discomfort is to beat ourselves up,” Evans says. “It’s all right to feel bad. What we’re not going to do is be mean to yourself because you made a mistake. You are allowed to make a mistake.”

Plus, the US tax system is pretty complex — that’s why there’s a literal career path dedicated to helping people navigate everything. “Tax outcomes fluctuate because income and life circumstances change,” Eric Bronnenkant, CPA, the head of tax at Edelman Financial Engines in New York City, tells Vox. “Raises, bonuses, side income, marriage, divorce, children, investment gains, and tax credits can all affect the final calculation. Even modest income changes can shift someone into a different tax bracket or reduce eligibility for certain deductions.” Basically, a lot of factors that determine what you owe are out of your control. 

The bottom line, Evans says: “Your family still loves you. Your life will still be okay. You just need to create a plan.”

3) Talk to a financial pro or folks in similar situations

Bronnenkant says that the IRS can definitely make mistakes, including missing documentation, incorrectly reported income, or even processing errors. Someone well-versed in taxes, like a CPA, might be able to help you find any deductions to shave off the amount you owe, or appeal the IRS’s decision. He also recommends checking out a government site called the Taxpayer Advocate Service, where you can get help for some outstanding filing and return questions. 

Still, when you’re faced with a sky-high fee, enlisting the help of a costly financial pro might not be feasible. In that case, Evans suggests polling people in similar situations for advice. For example, if you’re a first-year freelancer, are there any communities you can reach out to — say, a professional meetup group or even folks in a Reddit thread — to see how they’ve approached taxes? Again, you’re not the first person to owe this much. 

4) Map out a realistic plan to pay things off 

At some point, Frisari says, you’re going to need to reach out to the Big, Bad IRS. But they’re expecting your call, and for the most part, are ready to help. “Payment plans are always an option,” he says, adding that if you owe under $50,000, you’ll be automatically approved, no negotiation needed. While loans for higher amounts have a longer approval process, Frisari says they’re still pretty attainable. 

“Blowing your emergency fund to zero starts a vicious cycle that can lead to credit card debt, and that’s a much worse place to be.”

Lee Frisari, New York City-based tax adviser and co-founder of Hell Yeah Taxes

“When it comes to debt, IRS debt is the best debt there is,” Frisari says. “Probably the weirdest answer nobody was expecting, but it’s true.” As he explains, an interest rate on an IRS payment plan is about 7 percent APR, while a credit card can be closer to 20 percent. Meanwhile, something like medical debt can quickly get sent to collections if unpaid. “If you have to carry debt somewhere, the IRS should be the last creditor you pay off, not the first,” he says. So while you could also ask friends or family for help, all the experts interviewed for this piece agreed that the IRS installment plans are a good option for most people. 

“Drawing out your debt with the IRS is actually the smart play because of those low interest rates,” Frisari adds. “My advice for folks who can’t afford their bill is to go into the longest-term payment plan they’ll give you, pay the minimum they’ll accept, and if you can pay more later, throw extra at the bill. That does the least harm to your life.” 

There are some additional options too. Bronnenkant says that delaying your payment can be one way to go. “If you truly own nothing and can’t pay, you can submit an offer in compromise,” Frisari says. “I’ve seen someone with a $50,000 IRS bill negotiate it down to $7,000 because they had no assets, no savings, no inheritance coming. … But if you own a car, a house, and have a retirement account, then the ballgame changes. They know you can pay.”

Try not to use your savings, though, Frisari warns: “Blowing your emergency fund to zero starts a vicious cycle that can lead to credit card debt, and that’s a much worse place to be.” 

5) Plan to do things differently next year

You’re not stupid for owing a lot in taxes. The financial world is confusing and chaotic, but there are a few things you can do now to ensure you don’t owe a mega-ton next year too. 

“For W-2 employees, it’s a good idea to glance at your W-4 at least once a year — especially if something big changes, like a raise, bonus, marriage, divorce, or a new child,” Bronnenkant says. (FYI: A W-4 is the form your employer has you fill out when starting a new job, so they can withhold the right amount of federal income tax from your paycheck. If you want to review it or make changes, check in with HR or whoever handles payroll at your company.) “Those life updates can shift your tax picture more than you think.” He says that the IRS withholding estimator is pretty helpful “if you want to fine-tune things and avoid surprises.” 

As for 1099 workers or business owners, start planning for your taxes for the following year in January (or right now — it’s never too late). “Save a percentage of every dollar you earn,” Frisari says. “Think of it like training a muscle. If 10 percent is all you can manage right now, start there.” He says it’s also a good idea to understand your business expenses, as deductions and credits can make your final bill to the IRS more reasonable. 

And though it can be hard when friends are talking about blowing their entire tax refund on something fun, remember that you’re not the only one who has ever owed the IRS money. So try to push through any feelings of shame, reach out to folks in similar work situations, lean on your inner circle for emotional support, and maybe try to unlearn how to square dance entirely to save up brain space for your 2026 return.