Understanding IRS Debt Relief
  • January 17, 2020
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Debt is probably one of the most common concerns for most people today. Owing a significant amount of money to a bank or any other lender can be very stressful. However, most will agree that dealing with federal tax debt is the worst. The federal government takes your tax-paying duties seriously and has full power to collect on its debt. This means that tax debt collection is not only certain but also involves serious consequences.

Defaulting taxpayers are frequently penalized with fines, interest, levies, liens, and even asset seizure. For most, facing such consequences are far more daunting as compared to paying the tax debt. If you’re looking for the best way to deal with tax debt before it’s too late, read on. We dive deep into the different IRS debt relief alternatives available to you.

IRS Debt Relief

The most important concept you should grasp if you’re dealing with tax debt is that IRS debt relief is a real option for nearly all taxpayers. As evil as the IRS is sometimes portrayed, in reality, its only concern is to collect on what the government is owed. However, this is only possible if debtors have money to pay.

The IRS offers options that facilitate payment for those facing financial hardship. This way, it increases the probability of getting paid.

IRS debt relief includes several types of IRS debt agreements between taxpayers and the government. Such agreements address the concerns of both parties, to some degree. IRS debt help typically takes the form of a payment plan or debt settlement, depending on your specific situation.

Related Blog: Reasonable Causes for IRS Penalty Abatement

Your IRS Debt Relief Options

Installment Agreements

Installment agreements involve the IRS agreeing to a payment plan that will help you pay off your tax debt the easy way. Payments are made in installments during a period of time (up to 6 years), culminating in the full payment of your debt plus interest. The major benefit of this type of IRS debt relief option is that it saves you from scary penalties, liens, and levies.

Those owing less than 50,000 can easily apply for an IRS installment agreement from their website. A tax debt attorney can best consult you on the process and whether this is the best option for you.

Offer In Compromise

On special occasions, when tax debt payment, on any time frame, would result in an enormous amount of financial strain, taxpayers can apply for an OIC. This IRS debt relief option involves a settlement, where taxpayers have to pay significantly less than the amount owed. The IRS will only grant this type of debt help after careful consideration of all financial factors.

To apply for this type of IRS debt relief you need to pay 20% of the total offer amount in advance plus a fee of $186 US dollars.

Related Blog: Step-By-Step Guide to Filing for IRS Offer in Compromise

Take Advantage Of IRS Debt Forgiveness Program

The IRS is taking a friendly approach to encourage taxpayers to file and pay taxes. The IRS is aware that some payment, whether reduced or in installments, is better than no payments. For this reason, applying for installment agreements and other types of tax relief is easier than its ever been!

Applying For IRS Debt Relief

You can apply for any IRS debt relief option on your own. However, a tax law attorney can help you demystify the process. At Nick Nemeth’s Law Offices, our tax law experts will help you understand your own tax debt situation and discuss the best resolutions. Call us for a free consult at (972) 426-2553. or email us at jamie@myIRSteam.com.

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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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