Help for Resolving Tax Debt

Last updated on February 22, 2022

It is time to not only file taxes for 2012, but also all past taxes owed, if any. Those taxpayers who have back taxes and are seeking a resolution during this tax season must know what to expect from their tax help. Hiring the right tax debt firm is the most important step when resolving back taxes because only an honest and competent tax professional or tax company can achieve the best possible resolution to a tax debt problem.

Tax debt resolution does not necessary mean paying the entire tax debt. While the IRS prefers to receive the entire debt in a single payment, there are options for taxpayers who cannot pay the entire tax debt amount. An Installment Agreement is one of the most popular methods of paying a tax debt because most taxpayers qualify for it. Under this IRS payment program, taxpayers can pay back their tax debt in fixed monthly installments over a period of time.

A tax professional can help a taxpayer who owes the IRS by submitting a tax debt payment plan request to the IRS. Depending on the financial situation of the taxpayer, an Offer in Compromise, Partial-Payment Installment Agreement, Installment Agreement and Currently Not Collectible may be a beneficial resolution to a tax debt problem.

In cases of aggressive IRS actions, such as a tax lien or a levy, a tax debt resolution service will first get the lien or levy removed, and then proceeds to file for a debt payment plan that might include postponing the tax debt, monthly installment payment plan, or reduction in the debt amount.