Owing the IRS money is a feeling no person wants to deal with. It can feel like there is no way out, but truthfully, there are more IRS debt relief options than you may realize. It’s important to have an understanding of what options are out there and which ones are right for you.
Here are five types of IRS debt relief options:
- Installment Agreements – An installment agreement is one of the most common forms of IRS debt relief. With this plan, you can make monthly payments if you’re unable to pay your full balance. The monthly amount and length of the installment agreement are determined by how much you owe and your financial status.
- Currently Not Collectible Status – This type of IRS debt relief is for when you absolutely cannot make payments without facing some serious difficulties. Your debt isn’t erased, but any collection activity is stopped for a period of time.
- Offer In Compromise – You can settle your tax debt for less than what you actually owe, but you do have to qualify for this type of IRS debt relief option. The IRS only approves this if it determines that you won’t be able to pay the full amount before the statute of limitations expires.
- Penalty Abatement – Unfiled taxes, late payments, and other issues are penalized by the IRS. With penalty abatement, you can have these additional charges removed when there’s evidence of reasonable cause for the issues.
- State Tax Debt Relief – IRS debt relief isn’t the only type of help available. There are also relief plans available through state tax agencies.
Keep in mind that you will not be able to receive any IRS debt relief if you still have unfiled returns. The IRS requires the past six years of tax returns to be filed before considering debt relief options. I can help you with this and make sure your returns are filed and that you can receive IRS debt relief!