Back Taxes Resolution for Those Who Cannot Pay Tax Debt

Last updated on August 23, 2022

In many cases, resolution of back taxes does not involve full payment of the tax debt. Tax debt reduction becomes necessary for the IRS in cases where taxpayers have no means to fulfil the entire tax debt amount. In such cases, the IRS brings down the total tax debt amount so that taxpayers can pay it and resolve their back taxes.

The two most popular payment plans for tax debt reduction are Offer in Compromise and Partial Payment Installment Agreement. Depending on the financial circumstances of a taxpayer, s/he may apply for either of the two plans.

It is advisable to use the help of a tax professional or a tax resolution service before contacting the IRS regarding tax debt reduction, as the IRS looks to get the maximum amount in tax debt. A tax service helps a taxpayer in preparing and negotiating for tax debt reduction with the IRS. Using the services of a tax attorney or an enrolled agent, a professional tax resolution service provides the most benefits to the taxpayer in terms of the saving of time, money and effort.

Those who cannot pay tax debt must look to resolve their case as quickly as possible because the IRS might begin a collection process at any time. Liens and levies are difficult to remove, and complicate the case further. Therefore, taxpayers are advised to resolve their tax debt using a tax debt reduction plan with the IRS to free themselves of the burden and the danger of IRS collection actions.