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IRS Debt Relief-3 Fantastic Methods

27th August 2010
By Brian Prentice in Taxes
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The tremendous economic decline the country is now experiencing has caused intense difficulties for many persons in the U.S. For Individuals pursuing IRS debt relief due to a sizeable tax debt that they cannot pay, the effort is even more trying. The good news is that the IRS has announced that as a consequence of the current economic situation, they are being a lot more sensitive in working with past due tax accounts.

There are various options for individuals in pursuit of IRS debt relief. The method that is the most ideal will depend on a person's individual financial condition. Following are 3 common methods that have worked for many individuals:

Offer in Compromise - almost everybody is familiar with the IRS agreeing to accept a smaller amount as full payment for a person's tax debt. The IRS has a very low acceptance rate for these types of agreements since they are required to use a very strict formula in making their decision. For the IRS to agree to an offer, they have to reach the conclusion that they would not be able to collect the whole liability from a tax debtor over five years. If they think that they would not be able to, then you may get your Offer in Compromise approved. Since the Offer in Compromise guidelines are confusing, you need to hire a seasoned offer professional to assist you.

IRS Installment Agreement- an IRS payment plan is the least difficult to get accepted. There are various versions of these monthly payment agreements. Although interest and penalties will be added onto the amount you owe, the IRS will not send out any levies against you while you are on the arrangement.

Partial Payment Installment Agreement-This type of payment plan in some ways is similar to an Offer in Compromise but could end up being a better deal. You will need to have a tax pro evaluate if this would be the most desirable plan of action for you.

Often times handling an IRS collection case can be confusing. Although the country is in financial crises, the IRS will still attempt to get as much out of you as they are able. Hiring a tax professional can make the whole process much easier. If you have an old tax liability that you are unable to pay, you need the help of a professional to effectively handle the situation If there was ever a time to try, this is it.

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