IRS Back Taxes Resolution through Partial Payment of Tax Debt

Last updated on August 1, 2022

The resolution of IRS back taxes can involve the full payment of the entire back tax amount, partial payment of the tax debt amount, or the postponement of payment. However, the resolution of tax debt can be achieved with a partial payment or no payment only if a taxpayer has insufficient finances to pay the full amount of tax debt.

IRS Back Taxes Payment Methods

The most commonly used IRS debt reduction plans are an Offer in Compromise and the Partial Payment Installment Agreement. These plans allow taxpayers to pay a partial amount of back taxes in a lump sum or in installments. Both an Offer in Compromise and the Partial Payment Installment Agreement allow a reduction in the amount of tax debt for taxpayers who cannot pay the full back taxes.

Representation and Negotiation for IRS Back Taxes Reduction

The IRS looks to recover the most they can, even in cases where taxpayers are unable to fully pay their back taxes. To receive the most tax debt reduced, taxpayers use tax resolution services. Tax lawyers represent taxpayers before the IRS to provide them multiple benefits, including maximum reduction in tax debt, fast and painless resolution. Taxpayers must know that a tax service cannot achieve tax debt reduction if they are financially capable of paying the full tax debt amount.

Tax resolution services assist taxpayers in preparing their tax cases, with representation and negotiation following. They use their knowledge and skills to achieve a resolution that provides them the most benefits. Expert help becomes necessary to successfully negotiate the terms and conditions of a tax debt case because it requires specialized knowledge and skills.

IRS’ Stance on Back Taxes Reduction

The IRS reduces a tax debt if they find there is no other option than to resolve the tax debt case through a reduction. They explore the possibilities for the maximum payment, which include asking the taxpayer to take a loan and/or sell or mortgage any valuable assets.

A tax professional knowing the stance of the IRS prepares a tax debt case in such a way that counters the arguments of the IRS before they are made. This helps taxpayers get a quicker resolution while providing them with maximum benefits. In cases of tax debt reduction, it is best to use the services of competent tax help that can achieve the best results.