Here are 3 common options for working with the IRS to resolve your unpaid tax debt once and for all:
1) Offer in Compromise (IRS FRESH START INITIATIVE): In some cases, when you cannot pay your tax debt, the IRS can settle your debt for less than the amount you owe. There is an extensive application process to request an Offer in Compromise and you should be prepared to provide details about your financial situation. There is a $186 application fee to file for an offer in compromise. We have help over 750 clients settle their tax liabilities.
2) Installment Agreement: An installment agreement allows you to pay your tax debt off in installments, rather than in one lump sum. This can be more manageable for individuals and businesses that do not have the full amount at the time that taxes are filed. You are still responsible for paying the total amount (and any interest and penalties) but the IRS may let you make monthly payments to resolve the debt.
3) Temporary Delay or Status 53: If the IRS determines that you are unable to pay your tax debt, they might be willing to delay your tax bill or place your account in an uncollectible status. During this delay, the IRS will monitor your ability to pay and may even file a notice for a tax lien to protect their interests.
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