Why would the IRS want to settle a tax debt?
The IRS understands there are situations in which they will not be able to collect the entire amount of tax a citizen owes, no matter what they do or how hard they try. By agreeing to settle a tax debt, the IRS “brings the citizen back into the system.” The citizen is required to stay in compliance and pay their taxes on time after tax relief is granted. It’s a win-win situation for the citizen and the IRS.
