The Many Ways You Can Deal With IRS Debt

IRS debt can be a huge burden, but thankfully, there are many available approaches for dealing with this stressful ordeal. The following are a few of your best options for resolving your debt issues:

Set Up an Installment Plan

A top approach to resolving IRS debt, a standard installment plan allows you to pay off your debt over time. Multiple installment plan options are available, including short-term plans that are affordable and easy to set up, or long-term plans that make it possible to keep your monthly payments to a minimum.

Try an Offer in Compromise

Depending on your circumstances, you may qualify for an IRS offer in compromise. This excellent option enables you to settle your debt for less than you actually owe. To qualify, your offer should be equal to or greater than an IRS calculation known as the reasonable collection potential, which determines how much you are actually capable of paying given your current financial situation.

Seek Currently Not Collectible Status

If your account is deemed currently not collectible (CNC) due to financial hardship or an emergency situation, you may be able to defer payment. This option should not be regarded as a permanent solution, but it can prove extremely helpful if a crisis prevents you from dealing with your tax debt in the present. Keep in mind that it’s far from easy to qualify as CNC; you’ll need extensive documentation of your financial status. If you succeed, however, you can put off paying your debt without worrying about harsh IRS consequences for the time being.

Options abound for handling IRS debt. At the Highland Tax Group, we’ll work with you to get a better sense of ideal approaches for your situation — and we’ll help you put those strategies into action so you can bring your IRS drama to a swift close.