October 18, 2012

Individuals with tax debt can seek successful tax relief strategies that work. Many options are available depending on specific circumstances.

Offer in Compromise

This is a program offered by the IRS to taxpayers that allows individuals to pay off tax debt at less than they currently owe. If you suffer from a financial hardship, then an offer in compromise is an option for you to consider. The factors that are considered by the IRS for an offer in compromise include the ability of an individual to pay, current level of income, their expenses and their asset equity. You should consult a debt specialist to see if this is a viable strategy for your situation.

Penalty Abatement

This is a tax strategy where you can request that any penalties or interest be removed from your tax debt. The use of an abatement is an option if you can show the IRS good reason why you cannot pay all your taxes when they are due. This can include death, the loss of income, or imprisonment. Consult with your debt specialist to see if a penalty abatement is a viable strategy.

Installment Agreement

This is an option to pay your tax debt when you cannot make the full payment in full or on time. If you owe less than $50,000 in taxes, then you can apply for an installment agreement. You can complete this process online or over the phone. This is a valid strategy if your taxes are current.

Innocent Spouse Relief

This is a strategy for tax relief if married taxpayers have filed jointly. If you have a spouse that failed to report income to the IRS, then this is an option to obtain relief from taxes that are owed. This is also an option for people that are separated or recently divorced. You must request relief from tax debt within a 2-year period of being notified of taxes that are due.

Currently Not Collectible

Taxpayers that do not have the income or resources to pay taxes can request currently not collectible status by contacting the IRS. Consult with your debt specialist for additional details.

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