Getting In and Out of IRS Debt

Last updated on March 21, 2022

It is during tax season that taxpayers can resolve their back taxes and get back into the good books of the IRS. Taxpayers can file their past tax returns to potentially reduce their tax debt. In cases where taxpayers need to negotiate with the IRS, they may require the help of tax lawyers, enrolled agents, or a certified public accountant (CPA).

The resolution of tax debt can also be achieved in cases where taxpayers cannot pay the full amount of tax debt or any amount of tax debt. There are many IRS debt payment plans that taxpayers may choose from to pay off their tax debt comfortably. If taxpayers have yet to pay their taxes, they may hire a tax resolution company to prepare their case and match them with an IRS debt payment plan their fits their needs.

Tax lawyers and enrolled agents are an indispensable part of every tax resolution company because only they have the legal right to represent taxpayers before any administrative level of the IRS. They represent their client before the IRS to achieve the best resolution to a tax debt problem. It is mostly in cases where the tax debt amount has become substantial and cannot be paid in full that taxpayers seek the help of tax resolution companies and tax professionals.

To start, taxpayers should not postpone paying taxes or avoid it. They should seek for extension of time to file, in cases where they know they will not be able to file their taxes before the April 15^th deadline. Non-payment of taxes can lead to interest, penalties, and the possibility of aggressive collection actions by the IRS.