IRS Debt Resolution Plans

Last updated on March 8, 2022

In most cases, taxpayers intentionally avoid getting into tax debt, but sometimes IRS debt comes as a surprise. Tax filing inaccuracies, identity theft, or tax fraud by tax preparers can result in a tax debt that taxpayers become aware of only after receiving an IRS notice.

It is important for taxpayers to begin exploring ways of resolving their tax debt immediately. Even though there are various IRS debt payment plans, such as an Installment Agreement, Currently Not Collectible, a Partial Payment Installment Agreement, and Offers in Compromise; taxpayers can only apply for the one that their situation qualifies them for.

Most taxpayers hire tax lawyers to negotiate the debt amount to be paid to the IRS, including penalty, and/or extending the debt collection time.

In complex cases of tax debt, taxpayers may need to make appeals to the IRS. Taxpayers should apply for an IRS debt payment plan only after consulting legal help because many agreements require negotiation. To increase their chances of having a smooth and beneficial resolution, taxpayers should hire tax professionals to assist them in resolving their tax debt as soon as possible.