Tax Resolution

People who owe tax debts to the IRS must take swift action to prevent things from getting worse. Unfortunately, not all people can afford to pay their debts in full. This is the reason why the agency has developed different IRS Tax Resolution programs to address tax issues. One of the key factors to consider in determining a taxpayer’s eligibility for an IRS tax solution is his financial situation. Yes, the IRS prefers debtors to pay in full but the agency is willing to make compromises in certain circumstances.

Before agreeing to any sort of IRS tax resolution, the debtor must either negotiate with the agency for less than the total amount of debt cost or collect debts over a period of time. Of course, there are qualifications to be met before the IRS would consider a debtor’s offer. Here are the most common IRS tax resolution programs:

Offer-in-Compromise

An Offer-in-compromise is one of the most common types of IRS tax resolution debtors consider but it is also one of the hardest to qualify for. Essentially, an offer in compromise allows debtors to pay for less than the actual amount of tax debt that they owe. If the offer is accepted by the agency, the remaining tax liabilities will be wiped clean as soon as the debtor pays his debt. The catch is, debtors must convince the IRS that the amount of money offered is better than holding out for nothing.

Partial Payment Installment Agreement

For people who could not afford the minimum payment required by a conventional installment agreement, they can choose this IRS tax resolution option. A partial payment installment agreement allows debtors to pay off their tax debts over a specified time without straining their finances.

Penalty Abatement

This IRS tax resolution eliminates portions, if not all penalties owed. Although this debt relief option does not totally eliminate any of the base amount of tax owed, removing the penalty charges could make payments much less of a strain for the debtor’s finances. The IRS may be ruthless in terms of money extraction but if they determine that a debtor has legitimate reason for not filing or paying their taxes on time, they will allow for penalty abatement.

Looking for the right IRS tax resolution for your financial situation? Afraid the IRS will seize your assets for liquidation? Learn your options and take the best course of action! Get a free tax evaluation from tax experts.