Tax Relief FAQ: You Owe The IRS Back Taxes. What If You Cannot Pay The Full Amount Now?

If you are one of thousands of Americans who owe back taxes and interest to the IRS, it is important to take the necessary steps to resolve your IRS problems. The worst thing you can do is ignore letters from the IRS in hopes your troubles will go away. They will not- unless you take the appropriate steps now!

If you have back taxes to settle, it is essential to know your best options for dealing with the IRS so you can get the income tax relief you need.

If you owe back taxes but have limited, or no, ability to pay at the moment, there are several scenarios in which the IRS will work with you to reach a mutually agreeable solution that provides tax relief:

1) If you cannot pay the entire amount up front, you may be eligible for a monthly installment payment plan designed to pay off the full amount within five years.

2) If you can pay a certain amount per month, but that amount will not pay off the back taxes within five years, you can pursue an Offer in Compromise. With an OIC, the IRS agrees to settle your tax debt for less than the amount you actually owe, requiring a lump-sum payment or a short-term installment plan.

3) If you are unable to pay anything toward your back taxes AND can present evidence of your inability to pay, you may ask the IRS to declare your account “currently not collectible.” If so declared, the IRS agrees to suspend collection activities on the back taxes, including levies and garnishments, for about a year.

If you intend to seek IRS tax relief, you are best advised to bring in a Certified Tax Resolution Specialist or tax attorney who can best negotiate your case with the IRS.

Additional Information for Tax Relief:

Settling Back Taxes and IRS Problems
Get expert tax help resolving your tax debt for a fraction of what you owe to permanently settle your back taxes and IRS problems.

Tax Relief Glossary
Tax help glossary with common income tax relief terms to help you settle your IRS debt and permanently achieve your tax resolution.

IRS Tax Help Articles
Helpful articles for resolving IRS debt with IRS tax relief options like offer in compromise, IRS payment plans, and IRS audit resolution.

Tax Resolution University Blog
Expert tax relief resource to help you permanently resolve all back taxes and IRS problems.

For more answers to your tax relief questions, check out our Tax Relief FAQs page.

Tax Resolution Services, Co. is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Our expert team of tax attorneys, CPAs, and Certified Tax Resolution Specialists has a success rate of 90% – second to none in the industry – and an Offer in Compromise Settlement Rate of $0.11 on the dollar. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 866-IRS-PROBLEMS.

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