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If you get in over your head, IRS debt relief will be one of the most important topics on your mind. Until you resolve the matter of your back taxes, nothing else really matters. You can't spend your money on anything else because you know if you can't pay your taxes, you might go to jail. Luckily, there are options for IRS debt relief if you know where to look. Here are a few ways that you can get relief from your tax debt.
Payment Plans
One of your first and best options is to try and work with the IRS. If you talk to them and let them know that you don't have the money to pay off the debt, they will probably be willing to work with you. Offering to set up a payment plan lets them know that you are serious about repaying the debt. The worst thing you could do is ignore the problem and forget about it. It won't go away on its own. It is up to you to take the action to make things right. You can set up a payment plan with the IRS to repay the debt over a longer period of time. This way, the IRS gets their money and further action does not have to be taken.
Partial Payment Plan
This is another option that you could use to get out of tax debt. This is very similar to a payment plan in that you make a regular payment on your debt. However, with this option, you may not have to pay the entire amount. They agree to take less money in return for a regular payment for a period of time. They will review your situation every two years and see whether or not your payment should be raised or lowered.
Offer in Compromise
An offer in compromise is usually only accepted as a last resort for the IRS. They will try everything else first including a payment plan and a partial payment plan. When the IRS accepts an offer in compromise, they are taking less money than they are owed. Obviously this is not in their best interest. Therefore, they will do everything that they can to avoid this method. With an offer in compromise, you are basically getting a one-time settlement on your tax debt.
You can pay it off in a lump sum and avoid any more tax penalties or actions against you. Once you make your offer in compromise payment, the problem is done. The IRS will not bother you anymore and you are back to square one. This should not be taken lightly as you will probably only get one chance to do this. After you have made a settlement like this, you need to assess your situation and see what got you into this mess to begin with. Change the circumstances and you will be able to avoid the problem again.
