irs debt relief plans
  • May 31, 2022
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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.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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