Resolving IRS Tax Debt

Last updated on September 21, 2021

There are many IRS tax debt payment plans to resolve tax debt, but before you apply for a plan, you need to understand its restrictions. The IRS prefers to get the entire tax debt in a single payment. Although that might be plausible in cases where the tax debt amount is not substantial, but for IRS tax debt that runs into big figures, payment of the entire debt in a single payment is not an option.

Taxpayers who cannot pay the full amount of tax debt can choose IRS’ Installment Agreement, Partial Payment Installment Agreement, Offer in Compromise or Currently Not Collectible. Taxpayers must know that all these IRS tax debt payment programs have restrictions. The IRS takes into consideration the amount of tax debt to be paid, the financial condition of the taxpayer, assets and liability and other factors before deciding to quality a taxpayer for an IRS debt payment program.

It is best for taxpayers to hire the services of a tax resolution company or a tax professional to negotiate the terms and conditions of their tax debt payment plan. A tax help will assist them in choosing the appropriate IRS tax debt payment plan so that they have higher chances of qualifying for it.

Taxpayers may research before choosing a tax service to stay away from scammers. It is to be remembered that tax debt reduction plans of the IRS namely Offer in Compromise and Partial Payment Installment Agreement have strict restrictions based on the financial condition of taxpayers. It is best to stay away from tax services that make false promises of tax debt reduction without studying a tax case.