What are the available ways to settle my back taxes with the IRS?

There are four ways to settle back taxes with the IRS. All have requirements that must be adhered to in order to have a successful conclusion. And they are not always easy to obtain, especially when the amounts owed are over $25,000.

What the IRS Offers for Settlement Options

Each settlement is a distinct program although they may share similar features and forms for filing.

• The installment agreement is a standard program wherein the IRS agrees to the amount that the taxpayer can afford to pay over so much time. This program only works for those who owe less than $10,000 in total.
• Partial payment installment agreement works akin to a chapter 13 bankruptcy. Payments are made, but they will not pay off the amount that is due. Instead, as long as all of the requirements are adhered to, the remaining balance will be cleared, never to return.
• Not currently collectible is a status where the IRS feels that they cannot collect from the tax payer. They will make no attempt to collect on the debt for at least a year, if not longer.
• Offer in compromise is the one that is seen on all kinds of TV commercials. This is can be difficult to obtain as the IRS must agree that they will never collect most or all of the debt within two years.

Hire a Lawyer for Tax Representation

The best bet for clearing up tax issues is to hire a lawyer. They know the tax laws and can keep the IRS from lowering the boom on you. A lawyer's job is to get the best settlement possible for their client, one that is better than the client could obtain on their own.