IRS Debt Relief – Helping a Delinquent Taxpayer Resolve Their Tax Burden

IRS debt relief becomes extremely important when a taxpayer finds that they are unable to settle their tax debt in a lump sum. Living under the weight of tax debt is a very stressful experience for both the taxpayer and their family. Usually all normal activities have to be curtailed and sometimes meeting the expenses of basic needs becomes a problem. The IRS debt relief program has been available to taxpayers for many years. Its purpose is to allow taxpayers to settle their tax debts for an amount less than what they actually owe. To a large extent, the financial situation of the taxpayer influences the specific debt relief strategy adopted. In fact, after a negotiation with the IRS has been completed, the taxpayer may be given the option of a monthly or quarterly installment plan.

However, the installment payment option is more expensive than the lump sum payment method, since interest is charged with the previous resolution. But when it’s not possible to pay off a large amount of outstanding tax debt all at once, an installment plan is the only viable option. Navigating IRS debt settlement guidelines is extremely difficult for most taxpayers in the US. The average taxpayer is not familiar with the intricacies of the tax laws; therefore, seeking the assistance of a qualified tax expert is the way forward. Underestimating tax legality is dangerous and could put the taxpayer in greater danger.

If delinquent taxpayers have received notices from the IRS, they should take advantage of IRS debt relief programs as soon as possible. In many situations, tax relief is only offered for a short period of time, usually 2-4 months. The exact time required to get to the appropriate tax relief vehicle depends largely on the complexity of the specific tax problem. An IRS lien is a very difficult thing to deal with; therefore, it is best avoided at all costs. If it is too late, a property seizure, bank garnishment, or tax levy can be reversed, but the assistance of a highly competent tax attorney is required.

With the recession prevailing in the US and global economies, more and more Americans are failing to pay their IRS taxes. Therefore, people are advised to seek IRS debt relief as soon as possible, rather than waste time or procrastinate unnecessarily. There is a specific IRS tax debt relief program known as OIC (Offer in Compromise). Under federal law, the IRS is empowered to reach a negotiated agreement with the burdened taxpayer so that the debt is settled for less than the amount actually owed.