A Comprehensive Look At IRS Debt Relief Plans

irs debt relief plans

If you have unpaid taxes and are looking for ways to get IRS debt relief, it is imperative to talk to a debt relief attorney without delay. Although there are numerous IRS debt forgiveness plans, the conditions surrounding your unpaid IRS debt will eventually determine your eligibility for these options. Dallas tax attorneys help you navigate the different IRS debt relief options to find and pursue one that delivers the most favorable results. Let’s take a deep dive into the nature of the different plans as well as the eligibility criteria.

Different IRS debt relief plans

The following is a list of IRS debt forgiveness and relief options:

  • IRS Tax Installment Agreements (IA) allow you to pay off your tax obligation in installments if you are unable to pay it all at once.
  • Innocent Spouse Relief permits eligible spouses to avoid paying fines related to tax fraud or inaccuracies led by their partner, which they were unaware of.
  • Offer in Compromise (OIC) is a settlement alternative that allows certain taxpayers to pay the IRS substantially less taxes than what they originally owe.
  • Currently Not Collectible (CNC) status is a “clean slate” scheme for anyone who can demonstrate that they are unable to pay tax arrears.

Related Blog Post: What Is an IRS Tax Attorney?

Eligibility criteria for IRS debt forgiveness

If you have failed to pay your tax debt due to any legitimate financial hardship, there’s a strong possibility the IRS will be ready to work out a settlement with you. Without the help of a debt attorney, it can be difficult to figure out the best way to proceed. But in general, the following criteria is considered by the IRS:

  • Tax balance of less than $50,000
  • For single taxpayers, income cap of $100,000
  • For married couples filing jointly, income cap of $200,000
  • A record of 25% decline in the net income of the self-employed

Anyone requesting for an IRS tax installment agreement will be approved if they have enough evidence to show declining income levels. But monthly installment payments might not be the ideal solution for everyone, as some may need to opt for something like an “Offer in Compromise” or a “Currently Non-Collectible” status. In both scenarios, you get the provision to pay a lesser amount altogether. It’s worth noting that both of these alternatives require you to provide the IRS with supporting financial information. You wouldn’t want to present evidence that contradicts the claim that you can’t afford to pay your taxes. This is why many taxpayers seek IRS debt help from an experienced debt attorney to get their papers right.
Related Blog Post: When Can a Taxpayer File an Appeal Against IRS Penalties?


Keep in mind that you will not be considered for any IRS debt relief benefits until you have filed all prior and current tax returns. If you have unfiled tax returns, make sure you file them at the earliest. Although the IRS seldom fully forgives tax debt, inclusion into a debt forgiveness plan allows you to avoid costly penalties and fines that can tarnish your credit history. If you can show that you are experiencing a financial hardship that qualifies you for “Currently Non Collectible” status, your debt may be forgiven completely.


The complexity of IRS taxation rules can be intimidating for some taxpayers, leading them to overlook or make costly mistakes on issues related to their tax obligations. This is not a good practice as any delay or error in dealing with IRS debt will only make the situation worse through penalties and fines and other legal consequences. When looking for an expert Dallas tax attorney for help with IRS debt relief or IRS penalty abatement services, look no further than the Law Offices of Nick Nemeth. We have a team of highly-experienced debt attorneys ready to assist you find the best IRS problem resolution. Call us at (972) 426-2553 or fill out our contact form, and we will reach out to you at the earliest.

A Comprehensive Look At IRS Debt Relief Plans
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