IRS Tax Debt Resolution

Last updated on July 12, 2021

Tax debt is not hard to resolve if you know how to best resolve a case of tax debt. According to the financial situation of a taxpayer under debt, the IRS offers programs such as Installment Agreement, Offer in Compromise and Currently Not Collectible. These agreements have different qualifying guidelines that taxpayers need to fulfil.

Those taxpayers who cannot afford to pay their tax debt in full in a single payment can opt for IRS Installment Agreement. This back taxes payment program allows taxpayers to pay off their back taxes in fixed monthly installments over a period of time. Taxpayers need to be aware that the IRS charges interest and penalties on the amount of back taxes remaining to be paid.

Offer in Compromise is a back taxes reduction program under which the IRS reduces the tax debt amount of taxpayers who qualify for it. Only taxpayers who are into deep financial trouble and can only afford to meet their basic living needs may qualify for the program. Most taxpayers do not qualify for Offer in Compromise program because of this restriction.

Currently Not Collectible is an IRS program that postpones the collection process of the IRS. Only taxpayers who are in a financial crisis and cannot afford to pay any tax debt amount to the IRS may qualify for this agreement.

The IRS keeps a watch on the financial condition of taxpayers who are under this agreement to see improvements in their financial situation. If there is an improvement, the IRS may collect the taxes due.

Taxpayers can choose the IRS tax debt payment program that is best for them. If they are looking for outside help in the resolution of their tax problems, they may check our ratings and reviews of tax services, which will help them in choosing the right tax help.