At Tax Resolution Services we help people who are struggling with back taxes on a daily basis.Â Questions about how to settle back taxes are often asked of our Certified Tax Resolution Specialists.Â If you are struggling with back tax debt, there are tax relief options available, as outlined below.Â
Question: Thereâ€™s no way I can pay what the IRS says I owe. No way whatsoever! They say I owe the money, though. What options do I have?
Answer:Â I know exactly what youâ€™re feeling, because Iâ€™ve helped many, many tax clients work through exactly this type of IRS dread.
First of all, you should know you do in fact have options, and you should also know that the situation often isnâ€™t as dire as you think it is.
Your initial step should be to meet with a qualified tax professional. He or she will go over your current situation and analyze your previous returns to determine exactly how much you owe in back taxes. Itâ€™s not uncommon for this type of review to uncover previous errors that could result in an inflated debt figure to the IRS.
Either way, once you know exactly how much money in back taxes you owe, itâ€™s time to take action.
You may qualify for the IRS Offer in Compromise program. The IRS developed this program for taxpayers who, for whatever reason, are unable to pay off their tax debt, even over time. Under this program, a taxpayer and his qualified tax professional can negotiate a settlement offer that will effectively eliminate the IRS debt. This settlement offer often amounts to a substantial discount on the total amount owed.
Not everyone qualifies for the Offer in Compromise program, however, and if you do not qualify, you still have options. Among them is the Installment Agreement, which allows you to pay off your IRS debt over time, just as you would a car loan or mortgage. The IRS Installment Agreement, also known as an IRS payment plan,Â is designed so that you can pay off your debt over time without significantly altering your financial life.
More Tax Help, IRS News and Tax Relief Tips:
- Tax Expert Educates About Offer in Compromise and IRS Installment Agreement Plans
- Owe IRS Back Taxes? The Offer in Compromise or Installment Agreement are Options for Tax Relief
- The IRS Offer in Compromise Program Can Resolve Tax Debt for Qualifying Consumers
- Can I Settle Back Taxes with an Offer In Compromise or an IRS Installment Agreement?
- Got Back Taxes? The IRS Payment Plan or Installment Agreement Can Help
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