What type of programs does the IRS have to settle tax debt?
The IRS has several programs to settle tax debt. Each is described in detail below: 1. Installment Agreement – this is where you agree to pay your tax debt in full, but over an extended period of time 2. Offer in Compromise – this is where you pay less than the full amount of your tax obligations. In order to qualify for an Offer in Compromise, however, you will need to submit a detailed budget and asset disclosure showing that you do not have the income or resources to pay your full tax obligations. 3. Penalty abatement – as noted above, penalties and interest often cause your tax obligations to skyrocket. In many cases, once you have paid the underlying tax, the IRS will consider reducing some or all of the penalties assessed.
