When you have serious tax issues, you need someone who knows tax law


5 Ways to Resolve Your IRS Tax Debt

Every tax resolution case is unique. There are many ways to resolve your tax problems, but you need to find the right strategy for your case. 

If you’ve been dealing with IRS notices and a growing unpaid balance, consider any of these 5 ways to resolve your IRS tax debt.

Get Some Breathing Room

Avoiding imminent collection actions is a critical part of many tax resolution cases. If the IRS is threatening to levy your bank account in the coming weeks, your first priority needs to be stopping the levy. You can generally do this by requesting a Collection Due Process (CDP) hearing.

If you need more time to figure out your options, you can request currently not collectible status to delay collection actions for a period of time.

Reduce What You Owe

There are many ways to reduce what you owe the IRS:

  • Request abatement of penalties
  • Submit an Offer in Compromise
  • Request innocent spouse relief
  • Eliminate old tax debts that have expired
  • Submit a partial payment installment agreement

A good tax attorney can determine whether one or more of these options will work in your case. Lowering your tax debt makes it easier to pay off a big portion in a lump sum or over time in an installment agreement.

Pay Over Time

IRS installment agreements offer flexible payment terms and repayment periods. You can often repay your balance in monthly installments over up to 72 months.

There are many different types of installment agreements. You need to negotiate an agreement that fits your budget while still meeting the standards set by the IRS.

Borrow Against or Sell Assets

The IRS may expect you to tap into your existing equity before accepting an Offer in Compromise or certain types of installment agreements. In some cases, this may require getting tax liens removed from your property so you can sell or borrow against these assets.

You can use the proceeds as a deposit on your tax debt, then pay off the rest using a payment plan.

Stick to the Plan

Once you’ve entered into an installment agreement, Offer in Compromise, or any other deal with the IRS, you need to follow through. If you miss payments or fail to keep up with your current tax obligations, the IRS can back out of the deal and start coming after your assets again.

Make sure you negotiate a payment arrangement that you’ll be able to stick with. Contact a tax attorney for help handling the IRS and resolving your tax debt.

The Gartzman Law Firm handles tax debt settlement, tax audit defense, and other tax resolution cases. Use our contact form to request a consultation with an Atlanta tax resolution attorney.