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IRS Debt Help Options

Many people struggle with back taxes, unfiled tax returns, or audit penalties, all of which produce debts they simply cannot afford to pay. If you’re struggling, review the following IRS debt help options. Once you understand your options, contact a licensed tax attorney, Enrolled Agent, or Certified Public Accountant with experience resolving tax debts. They can help you successfully navigate the IRS maze.

Tax Debt Options

In addition to full, prompt payment, which many people can’t afford, IRS debts can be resolved with one of five options:

* Offer in Compromise: an agreement to settle the debt for significantly less than is owed via a lump sum payment or a brief installment plan.
* Installment agreement: a monthly payment plan for the full balance of the IRS debt.
* Partial payment installment agreement: a monthly payment plan for a portion of the tax debt.
* Currently not collectible: an agreement by the IRS not to seek collection of a tax debt for a specific period of time.
* Bankruptcy: an order to discharge all or part of your IRS debts under chapter 7 or 13 bankruptcy.

Offer in Compromise

You’ve probably seen ads on television that promise to settle tax debts for as little as 10% of the total amount due using the IRS Offer in Compromise (OIC). Despite their claims, offers-in-compromise are not simple or common. Only about 15% of OIC applications are approved by the IRS and applications take 12-24 months to process. If you’re interested in this option, contact a tax professional with a proven record of successfully negotiating offers in compromise.

Installment Agreement, Full or Partial

If you don’t qualify for an OIC and are deemed able to pay all or most of the debt, the IRS may offer an installment agreement. Individuals who owed less than $25,000 can often apply for these themselves if they plan to pay the debt in full, but a tax professional should assist you if you wish to apply for a partial installment plan or owe more than $25,000