IRS Debt – Your Resolution Options

Posted on February 5, 2024

IRS Debt – Your Resolution Options

There are various ways in which tax debt can be resolved. If you have the financial ability to pay your entire tax debt in a single payment, you can prevent the penalties and interest that the IRS charges each month.

Another method of resolving back taxes is through making installment payments. Paying in installments is popular because it allows a taxpayer more time to pay. Even though the IRS continues to charge penalties and interest, making larger payments early on can cut down on what you ultimately spend.

Taxpayers without financial means may consider applying for IRS tax reduction plans. A reduction plan lowers the total tax debt to an amount that can be paid by the taxpayer in order to resolve the case.

Taxpayers with no ability to pay can postpone satisfying their tax debt by using Currently Not Collectible. This plan stops all collection actions and allows more time for the taxpayer to handle his or her liability.

It is important to note that every payment plan has specific qualifying factors that not everyone qualifies for. Using the help of a tax service or a professional is recommended to obtain a resolution that best suits your needs.


One thought on “IRS Debt – Your Resolution Options

  1. Hello we are paying on an installment agreement from 2011, we began payments 2013. $600 a month now, and they took our 2012 tax refund. Ok well now we owe the irs for 2013 $21,000 or so.
    I tried calling irs to see what we should do but after over an hour of sitting on hold I got a grumpy woman she put me on hold and then she disconnected me. Question is what should we do? Does the irs allow people I. This situation to add it to the other money owed them and make a larger payment?

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