Career Advice - A Community Blog

Erik Larson writes about the job market, resume improvement, and career advice

Five ways to handle your IRS tax debts

Written by Erik Larson, Community Blogger | Jan 30, 2018 1:41 AM

Many taxpayers usually turn to professional tax help like a CPA professional, a specialized IRS attorney or a Certified Tax Resolution Specialist, while others may decide to represent themselves at the IRS. The reason why most people hire the services of a professional is that they want to minimize their contacts with the IRS office but still maximize their tax settlement.

It is intimidating for most people to owe the IRS money. The IRS can seize your assets, and even garnish your wages. To avoid these actions, you need to communicate early enough with the IRS about your situation. To properly handle your issues with outstanding tax debt, we are going to look at five options that are available for you.

Partial Installment agreement

This is a debt management plan that allows you to have a long-term payment plan at a reduced rate. It works like a monthly credit card system where the IRS allows payments of the unpaid taxes in bits. A Certified Tax Resolution Specialist can help you negotiate your monthly installment to the most manageable amount you can work with. Just like the Gordon Law Group says, "We get favorable results."

Consider an installment agreement

If by any chance you got involved in a Ponzi scheme and all your investment was lost, you may consider taking the United States Tax Code to recover approximately 40% of the losses you incurred. This complex and technical process can assist you to reduce the taxes you paid in previous years, and you end up with interest.

Offer in compromise

This is a program that helps you to pay less than what you owe the IRS. This program requires you to pay a huge amount or request for a short-term payment plan at a reduced rate. If you have huge tax debt, you can use this plan. Generally, an Offer in Compromise allows you to pay some amount as the final payment. You can save up to thousands of dollars in interest, penalties, and taxes.

Not currently collectible

In this program, the IRS agrees to avoid collecting tax debt for a period of one year or more. The phrase Currently not collectible refers to a taxpayer who cannot pay the tax debts. Evidence has to be received by the IRS indicating that the taxpayer cannot pay taxes; this is when the IRS declares "currently not collectible."

This is a valuable program that can help you file a collection appeal for you to stop the IRS lien, levy, denial or seizure or stoppage of an installment agreement. This program gives you the opportunity to explain how to resolve the situation without the need for the IRS seizure or levy.

Use a credit card debt settlement to lower your debt.

To achieve a credit card debt consolidation, you can either do it on your own or go through a company that offers credit card debt settlement. You need to avoid the credit card debt settlement companies because they collect your monthly payments before an offer about the settlement is made. There are times when these companies don't make an offer, and the worst part is that you will still be receiving calls for collection and you will a credit report that has negative payment marks.


The IRS can go to the extent of issuing a bank levy to your bank account in order to recover your back taxes. When money is available in your account, the IRS levy makes the bank to transfer money to the IRS within 21 days unless the IRS gives another directive.

As we have seen, there are several ways in which you can work with the IRS to pay your taxes in a better way. Ensure that you consult a professional when you want to pay your taxes, for you to get the best program to work with.

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