Simple Resolution of IRS Back Taxes

Last updated on August 1, 2022

Back tax resolution can be achieved by qualifying for an IRS debt resolution plan. There are many resolution plans designed to allow taxpayers to pay their tax debt comfortably, depending on the various financial factors. Tax debt resolution may involve a reduction in the amount of tax debt if a taxpayer does not have the financial capability of paying the entire tax debt.

The simplest way to resolve a tax debt is by paying the entire tax debt amount in a single payment. It does not involve qualifying for a tax debt resolution plan. It is a straightforward method that does not require representation and negotiation.

There are several IRS debt resolution plans, such as an Installment Agreement, an Offer in Compromise, the Partial Payment Installment Agreement, and the Currently Not Collectible program. Installment Agreement does not involve a reduction in tax debt unlike Offer in Compromise and Partial Payment Installment Agreement. Taxpayers who have the financial strength to pay their entire IRS back taxes can use Installment Agreement to pay the taxes owed over a period of time in fixed monthly installments.

Taxpayers who desire a tax debt reduction should explore an Offer in Compromise or a Partial Payment Installment Agreement. Taxpayers who cannot pay anything towards their tax debt can postpone payment using the Currently Not Collectible program.

Taxpayers should explore all possibilities and consult with a tax professional about the resolution process and achieving the most favorable resolution.