If you—or someone you care about—owe back taxes to the IRS, the 2025 tax law includes some much-needed relief.
While not every change applies to every situation, these updates can make a real difference for people trying to resolve tax debt without unnecessary stress or red tape. Here's what's new, and how to take advantage of it.
1. New IRS “Simple Payment Plan” Now Available
The IRS has launched a more accessible payment plan option for individuals who owe $50,000 or less (including interest and penalties). The process is designed to be streamlined and low-hassle.
No complex paperwork. No long explanations.
You can now apply online or over the phone and get started without submitting financial statements or jumping through hoops.
2. Manage Your Payment Plan Online with Ease
Previously, making changes to an IRS installment agreement often meant calling the IRS, sitting on hold, and mailing in paperwork.
That’s no longer the case.
The IRS now allows you to:
- Pause your payment plan
- Update the monthly amount
- Change your bank account info
- Make one-time payments
- Access your balance and schedule
All online, without the phone calls. Full details here:
IRS.gov: Payment Plans & Installment Agreements
3. Automatic Debit = No Tax Liens or Collections Review
If you choose to pay through automatic bank withdrawal (also known as Direct Debit), the IRS will often fast-track your approval—and you may be able to avoid a formal tax lien or deeper collections process.
This is a huge benefit for taxpayers who are ready to take responsibility but want to avoid long-term credit damage or collection activity.
Why This Matters Now
For many individuals and small business owners, tax debt feels overwhelming—but with these 2025 updates, it’s now easier than it’s been in years to get caught up.
While not every taxpayer will qualify for every benefit, the tools are there—and we’re here to help you (or someone you care about) use them properly.
Email me at kim@kimberlybagleycpa.com or book a call with me here if you’re ready to resolve IRS back taxes—or just want to explore your options with guidance you can trust.