IRS Tax Debt Relief with IRS Debt Settlement

IRS tax debt can be debilitating to a United States taxpayer. If your tax debt is severe enough, the IRS will use every enforcement tool at their discretion to force you to find a way to pay what you owe. And if you won’t pay your tax debt, the IRS can levy your property, your bank accounts, your Social Security benefits, and even your wages. They can seize your property and your house and they have the power to make your life incredibly uncomfortable and difficult. If you have IRS debt, it’s an understatement to say you have a tax problem.

Instead of living in fear of all the things the IRS may do, take a minute to review this page to better understand your IRS debt and some of the options that may be available to you for reducing or even eliminating your tax debt and resolving your IRS problems.

How You Wound Up with IRS Debt

Taxpayers find themselves deep in tax debt for a number of reasons. Some are more common than others and those listed here are by no means exhaustive. Some common reasons we see people get in over their head with IRS debt include:

• Unfiled tax returns leading to accumulation of back taxes
• Unfavorable tax audit results
• Inability to pay balance due
• Accrual of fees, penalties, and interest on tax balance
• Falling victim to tax protestor or untax plans and schemes
• Foreclosure
• Bankruptcy
• Early withdrawal of IRA or retirement funds

Understanding the Degree of Your IRS Tax Debt

The IRS communicates most often by mail. They send out an inordinate number of tax notices, reminders, and balance due statements. To understand just how severe your tax debt situation is, refer to our IRS Notices page and find the most recent notice the IRS sent you. Then look at the IRS Collections Process Chart to see where that notice fits into the collections process. The closer you get to enforcement of levies and liens, the more serious your tax debt situation is. We strongly encourage you to address your IRS debt sooner rather than later and to seek IRS tax help.

Finding a Solution to Your IRS Debt

Regardless of how much you owe, there are multiple programs the IRS offers to encourage you to pay off your tax debt and, in some cases, negotiate a settlement. Common ways you can deal with out-of-control IRS debt include:

• Negotiating a monthly payment plan (referred to as an installment agreement by the IRS)
• Setting up a partial payment installment agreement
• Negotiating a tax settlement with the IRS (offer in compromise)
• Proving to the IRS that the tax debt is not currently collectible

Statute of Limitations on Collections

The IRS has only ten years to collect a tax liability from the day it was finalized. From that day, the IRS has only ten years to collect the liability plus any interest, fees, and penalties associated with the liability. The IRS will negotiate tax debt solutions in their favor so that they collect as much revenue within the allotted ten years as possible. If you would like help negotiating a deal to resolve your IRS debt to be more in your favor than theirs, contact us for a free evaluation today.