Can someone with back taxes still enroll?

Yes — individuals with back taxes can still enroll in the 12-411 process. However, it’s important to clarify that the process does not automatically eliminate or erase past tax debt.

Each tax return you’ve filed in previous years is treated by the IRS as a separate, binding agreement — a contract you voluntarily entered into under penalty of perjury, agreeing to pay a specific amount. The 12-411 process does not retroactively void those contracts.

That said, the process can still be extremely beneficial to individuals with outstanding IRS balances. Here’s how:

• When you become exempt and begin receiving full federal refunds through lawful money redemption, the IRS may automatically apply those refunds toward your back taxes.

• For example, if you owe $10,000 but are entitled to a $20,000 federal refund after going through the 12-411 process, the IRS will apply the first $10,000 toward your debt — and you’ll still receive a $10,000 refund check.

This not only helps clear your debt but allows you to restart your relationship with the IRS in full compliance, without needing to come out of pocket.

So while the process doesn’t eliminate past tax liability by itself, it gives you a powerful legal and financial tool to pay off your back taxes using your own refund, rather than your savings or wages.