How to Resolve Tax Debt

Last updated on November 1, 2022

There are many options available to taxpayers looking to resolve their tax debt. The simplest method is to pay the entire back tax in a single payment because it does not involve the process of qualifying for an IRS debt payment plan. Taxpayers who cannot afford to pay their entire tax debt in a lump sum can apply for a debt payment plan.

Some of the popular methods of tax debt payment include Installment Agreement, Offer in Compromise, Currently Not Collectible, and Partial Payment Installment Agreement. These payment plans have different qualifying restrictions. The majority of them take into consideration the financial strength of applicant taxpayers to judge their ability to pay.

Most taxpayers who want to resolve their tax debt through a payment plan use the services of a tax professional or a tax resolution company because of the intricacies involved in the resolution process. If taxpayers are finding it difficult to handle a tax debt case themselves, it is a good idea to hire the help of a tax professional. Choosing a legitimate and a competent tax professional can smoothen the process of resolution.

It is vital to begin the resolution process of tax debt after receiving notices from the IRS. If left unresponded, the IRS will follow their usual procedure for tax debt cases, and move to aggressive collection actions. Tax debt resolution might not be simple, but it can be made simpler by making the right choices.