Although it can be an isolating feeling, many Americans are in need of IRS tax debt settlement help every year. Unpaid taxes are similar to student loan debt in the sense that they cannot be negotiated with a debt relief program. However, the Internal Revenue Service (IRS) provides different methods to help individuals who are struggling to catch-up with back taxes and money they simply don't have.
IRS Tax Debt Settlement Help
Whilst there are no guarantees of assistance, it may be possible to get tax debt relief in five different ways. The methods are rather involved so it is normally advisable to seek guidance from a suitably qualified professional. Help with unpaid taxes could come from an offer in compromise, installment agreement, partial payment installment agreement, not currently collectible or through filing for bankruptcy.
Full & Partial Installment Agreement - Tax Debt Settlement Through an Installment Plan
Whilst an offer in compromise is preferred, those who are able to make a series of installments to settle unpaid taxes will not qualify. Instead, it is expected that a suitable repayment plan will be structured to allow the money to be repaid. A partial installment agreement is similar, except that it involves offering the IRS repayments on a set percentage of the amount owed.
Offer in Compromise - Offer to Pay a Small Percentage of Unpaid Taxes
An offer is made to pay the 'reasonable collection potential' and not all unpaid taxes. Whilst this may seem like a panacea, only a small percentage of offers are actually accepted. Should it be possible to clear debt via an installment plan, this form of IRS tax debt settlement help will not be available. It can be a highly complex area so the majority of people choose to utilise the services of a tax professional.