IRS Debt Resolution: What Are Your Options

Last updated on March 15, 2022

Paying taxes may hurt, but not paying taxes can hurt even more. Taxes may be voluntary, but there are penalties for not complying. The IRS has the legal right to seize and sell a taxpayer’s property and/or assets if they fail to pay taxes.

The simplest method to resolve IRS debt is to pay the entire debt amount in a single payment. If the debt amount is small, full payment ensures that taxpayers save money on interest. If a full lump sum payment is not an option due to financial constrictions, or the size of the debt, taxpayers may need to hire legal help to negotiate an IRS debt payment plan.

The IRS has various debt payment plans that can help a taxpayer resolve their taxes affordably. Legal tax help is beneficial because penalties can be reduced or forgiven, the debt amount may be able to be reduced or postponed, or a payment plan can be reached through IRS negotiations.

When a taxpayer avoids paying their debt, or negotiating a payment agreement, they give the IRS the legal right to place a lien or levy on their property and/or assets to secure the payment of IRS debt. Tax debt resolution services can help taxpayers achieve a smooth, favorable and fast resolution.