In a recent story in the Detroit Free Press, it was revealed that City Council member and well-known Motown entertainer Martha Reeves has tax liens from the IRS and State of Michigan totaling nearly $280,000. Much disgust was expressed by some Detroit residents that someone as presumably wealthy as Reeves could fail to pay her taxes. However, this is a much more common occurrence than you may think, and a problem that touches the wealthy and struggling alike. (Remember several months ago, when it was brought to the nation’s attention that Treasury secretary Timothy Geithner was behind on his personal taxes?)

Anytime a person has an untaxed income source, such as freelance or contracted work, it falls on that person to pay the appropriate taxes. For someone like an entertainer, for example, the majority of their income does not go through an employer, and therefore it is up to the individual to factor the amount of tax and submit it to the government. It is very easy in this scenario to put other bills before the tax bill, and to fall seriously delinquent. As the substantial late penalties pile up, a person’s tax bill can quickly spiral out of control.

Perhaps you or someone you know has fallen behind on their tax bill, either from being self-employed or for some other reason. What can be done? It may seem hopeless, but there are various options for those who wish to get current. The goal of the IRS is to get something, so they will generally work with people in some way or another to achieve a result that both parties can live with. Depending on your circumstances, this may mean an Offer in Compromise to reduce the tax owed, an Installment Agreement, or a Currently Non-Collectable status. Consulting a tax professional is a good way to find out what option is best suited for you.