You owe the IRS a fortune, but it wasn't always like this.
It's the IRS penalties and interest that are dragging you down.
You can't pay in full, but fortunately, there are ways to reduce what you owe the IRS...
It won't be easy, but it doesn't hurt to try the 3 Tips for Reducing IRS Tax Debt listed below when you have no other options.
1) IRS Penalty Abatement: When you get in debt to the IRS interest and penalties start adding on to your debt immediately.
Do You Qualify?: If you’ve suffered a catastrophic event in your life and this caused you to owe the IRS, you may qualify to have the penalties removed from your debt.
2) Innocent Spouse Relief: Normally if you marry someone you also marry their tax debt. However there are exceptions to the rules, and you can get out of a debt created by your ex-spouse.
Do You Qualify?: You may qualify for relief from a spouse or ex spouse's debt if you didn't file jointly, if you didn't know about the debt, or if you were facing a severe hardship situation.
3) Currently Non Collectible: This doesn't necessarily reduce the amount you owe, but it's the perfect solution if you current cannot aforrd to pay the IRS.
Do You Qualify?: This is only granted for those who cannot pay for basic living necessities and the IRS at the same time. The IRS will temporarily suspend collection activities and resume them when you're able to make payments.
Strengthening Your Chances: You have to put up a fight to get the IRS to stop collections or reduce the amount owed. Make sure you go in ready, have plenty of documentation to substantiate your claims.
On Tax Debt Settlements: A Tax Debt Settlement is known as an "Offer in Compromise". I don't like to endorse this method to resolve Tax Debt because the IRS almost never approves an offer! Applying for an offer is a lengthy process that's best left to a professional!
