Resolution of Back Taxes with Little or No Money

Last updated on February 15, 2022

Back taxes scare most people. When taxpayers find that they are unable to pay the entire tax debt, many postpone making any payment, which can lead to an IRS lien or levy. The IRS looks to collect the entire back taxes, but when if it cannot, it will negotiate the other options available.

IRS payment plans, namely Partial Payment Installment Agreement and Currently Not Collectible can be used to get the tax debt amount reduced, pay reduced debt amount in monthly installments, or postpone payment of the tax debt entirely. If a taxpayer can pay some amount of tax debt, an Offer in Compromise or Partial Payment Installment Agreement may be beneficial.

Even though the terms and conditions of IRS tax debt payment plans are clear, depending on the financial condition of taxpayers, they can be altered. To achieve the most beneficial resolution of back taxes, most taxpayers hire tax professionals or tax resolution companies.

Tax debt companies use the services of tax lawyers who have the legal right to represent taxpayers before the IRS. They negotiate for a resolution of back taxes that gives the most beneficial results, including a reduction in penalties, comfortable payment plans, or a postponement of payment. Taxpayers can get back into the good books with the IRS even when they have little or no money to pay the debt through smart resolution.