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  • Resolving the IRS tax debt issues – Your options

    Thursday 26th of September 2013 1:19:43 PM

    IRS tax debt is one of the most dreaded problems. However, there is nothing to fear and you can get the problem solved. For that, it would be better for you to discuss the situation with the IRS, rather than avoiding them. In addition, you can also get help from a tax debt resolution attorney or tax help agency. A tax debt help agency can guide you in solving the tax debt issues, without you having to go through the hassles.

    There are various ways through which you can try paying down the tax debts if your own. These are:

    1. Offer in Compromise – Offer in Compromise is the option through which you can settle the amount that is to be paid to the IRS. In this case, you would be required to make a lump sum payment to the creditor. The IRS may agree to your settlement request, if they realize that you would not be able to make the payments in full, even if they put lien against your property or assets.


    1. Installment payment agreement – If you do not have the ability to make the tax payments in full, you can request the IRS to allow you installment payments. This is a form of monthly payment plan, which requires you to pay as per your affordability and that too, in small amounts. Thus, it becomes easier to pay down your IRS tax debt.


    1. Currently not collectible – This is the option for those who really cannot manage to make any payments at present. Under this option, the IRS doesn’t require you to make payments for a certain period, like a year or may be more. This period is known as “Currently not Collectible” period. So, you aren’t actually required to make any payments to the IRS within this time limit.


    1. Partial payment installment agreement – This is a form of tax debt management program where you don’t simply get to ame installment payments. You get the additional advantage of making installment payment on a part of the debt. However, this is a long term payment plan, which is outlined by the IRS, to help you make the payments on tax debts in case you are low on affordability.


    1. Penalty reprieve – When you fail to make the payments on tax debts, the IRS charges penalty. Thus, when you will be making the tax debt payments, it is not only the tax debt amount that you will be required to pay. You will also be required to make the penalty payments on the taxes. However, if the IRS agrees to offer you this option, you would not be required to make the penalty payments.


    1. Getting reprieve through bankruptcy – If you are planning to file bankruptcy, in some cases, the tax debts can be discharged through the same. Although, not all of the tax debts can be discharged through the same. However, it is better to avoid filing bankruptcy, as it has a bad effect on your credit.

    The above are the options through which you can manage to pay down your tax debts. The other option is getting help from a tax debt attorney. They can help you and offer you advice on solving the debt issues, as they are more knowledgeable.

    Author Bio: Amy Lewis is a financial writer and expert in dealing with financial matters. She loves to contribute write ups based on finance to various websites and blogs in order to help people struggling with financial worries. She is associated with OVLG for quite some time. To know more on how to solve debt issues and other such debt problems, you may visit




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