Seeking Relief from IRS Tax Debt

Last updated on December 26, 2022

Taxpayers who cannot afford to pay their entire tax debt often look for resolution methods that can help them to resolve their back taxes. It is important to resolve the tax debt as early as possible so that IRS debt penalties and interest do not accumulate. IRS collection actions can also be avoided if taxpayers resolve their back taxes early.

The IRS’ new Fresh Start initiative was introduced to make it simpler for taxpayers to resolve their tax debt. Under the Fresh Start initiative, the IRS increased the filing threshold for the Streamlined Installment Agreement, reduced the disclosure of financial information for certain tax debt payment plans, and extended the time for payment of tax debt under certain circumstances. Essentially, the problems taxpayers were facing in the resolution of tax debt have been eased by the IRS.

When seeking IRS tax debt relief, taxpayers should review all qualifying factors of the payment plans to determine which one they are eligible to qualify for, and which one can provide them with the maximum benefit. The particulars of their case, including the tax debt amount, penalties, interest and reasons for the non-compliance affect the resolution.

It is not always easy for a taxpayer to decide which payment plan they should apply for. Therefore, they should consult a tax specialist or hire a tax resolution service to help them to prepare their tax case, choose the most favorable tax debt resolution plan, and present their case before the IRS.