Tax Debt Relief From the IRS: What You Need to Know

Most people dread getting a bill from the IRS. But if you find yourself in a situation where you owe money to the IRS, there are options available to help you get relief from your debt. Read on to learn more about tax debt relief and how it can help you.

Offer In Compromise

There are a few different types of tax debt relief that you may be eligible for. One option is called an offer in compromise (OIC). With an OIC, you agree to pay the IRS a lump sum that is less than the full amount that you owe. In order to qualify for an OIC, you must prove that you are unable to pay the full amount of your debt and that paying the reduced amount would not create an undue financial hardship for you. 

Currently Not Collectible

Another option for tax debt relief is called Currently Not Collectible status (CNC). With CNC status, the IRS agrees to temporarily suspend collection activities on your owed taxes. This can be helpful if you are facing a financial hardship and need some time to get back on your feet. Keep in mind that CNC status does not forgive your debt; it just gives you a temporary reprieve from having to pay it. 

Installment Agreement

The final type of tax debt relief is called an installment agreement. With an installment agreement, you agree to make monthly payments to the IRS until your debt is paid off. This can be a good option if you are able to make regular, monthly payments but cannot afford to pay your entire tax bill all at once. 

Closing

If you find yourself owing taxes to the IRS, there is no need to panic. There are options available to help you get relief from your debt. An offer in compromise (OIC), currently not collectible status (CNC), or an installment agreement may be right for you depending on your unique circumstances. Talk to a tax professional today to learn more about which option may be best for resolving your tax debt.

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