IRS Tax Debt Reduction

Last updated on May 16, 2022

When taxpayers think about resolving their tax debt, they look for ways to decrease their overall tax liability. While there are many ways to reduce a tax debt legally and stay within IRS rules and regulations, not every taxpayer qualifies for tax debt reduction. It is advisable to use legal tax help to understand the particulars of a case before looking for tax debt reduction.

Tax debt reduction does not just mean a reduction in the amount. Penalties can also be reduced if a taxpayer qualifies, and because interest and penalties are added to the balance monthly, taxpayers can reduce their overall tax amount with a penalty reduction.

To help taxpayers pay their tax debt more comfortably, the IRS has many tax debt resolution programs, such as an Installment Agreement, Currently Not Collectible, an Offer in Compromise and a Partial Payment Installment Agreement. Tax debt can be reduced slightly or substantially under various tax debt payment plans, depending on the financial condition of the taxpayer, years of non-payment, personal condition, and other factors.

For an effective resolution, taxpayers should consider the services of a tax resolution company or a tax attorney to negotiate the terms and conditions of their agreement. Although every tax debt payment plan has strict qualifying factors, the IRS takes into account individual taxpayers’ particulars before accepting them into a debt payment plan.

Our ratings and reviews of trusted tax resolution services may help taxpayers in making an informed decision regarding hiring a tax help that will provide them with the most beneficial resolution.