Did You Say, Free? Times are tough, everyone wants something for free. Things are never easy when you're dealing with IRS Debt, but there are still free options available from them. Especially if you can prove you just don't have a buck to pay them with.
Truly Poor: Financially strong one moment, struggling to survive the next. This is a harsh reality for many people that owe the IRS. When I worked as an IRS Hitman I often heard, “Believe me, I'd pay you, if only I could.” And to be honest, that didn't stop me from doing my job. We were instructed to keep up with persistent collection efforts until the debt was paid in full. So what can you do?
Currently Not Collectible: Are you in an uncontrollable situation that will make paying off your IRS Debt impossible? For example, you are disabled and will be on disability for the rest of your life, or you are a single mother living off of child support and alimony alone? Currently Not Collectible is a free IRS program that may be right for you. Basically, it's an account status that will keep the IRS from calling about your IRS debt. And sometimes, you will be left alone up until the time when you statue of limitations runs out.
Offer in Compromise: You have to pay a non-refundable 20% of the settlement you offer the IRS and $150 application fee as a down payment, before they will even consider giving you a settlement. But, if you can prove you have no income now and never will to pay the down payment with, you will be exempt. Now, don't get your hopes up. Only a small handful of people can even qualify for an Offer in Compromise. But in some extremely rare cases, debts have been settled because the taxpayer could not pay on the debt at all.
The Hard Goodbye: Your IRS Debt isn't going to go away without a fight. Again, I'm going to be frank. Most people do not qualify for these programs. And even if they do, without a professional representing them, they are not likely to win a settlement or be placed in currently not collectible status. Normal taxpayers don't stand a chance against the big bad IRS. So if you are considering any of these options, consider seeking some help!