Factors That Affect Tax Debt Resolution


In order to successfully resolve a tax debt, it's important to understand the IRS policies and tax laws that affect your situation. Care must be taken in choosing an appropriate payment plan that will provide you the most effective resolution. The IRS has various payment plans, otherwise known as Installment Agreements. Programs that reduce or delay payment of a tax debt are not applicable to all taxpayers and there are specific requirements to secure them.

Even if you can qualify for a payment plan, it's important to make sure you can meet the agreement requirements. Many times, taxpayers find that they're unable to adhere to the plan conditions, or agree to pay more than they can afford. In instances of noncompliance, the IRS will terminate the agreement and will not reinstate it without a valid explanation from the taxpayer. After the IRS terminates a payment plan due to noncompliance, they renew the collection actions if taxes remain unpaid and there is no effort made by the taxpayer to resolve the tax debt.


The lifespan of the tax debt also impacts how much you need to pay. The longer the back taxes remain unpaid, the greater the penalties and interest. In order to accurately calculate your tax debt, any additional fees have to be factored in.

Taxpayers that are unsure of how to resolve their tax debt often hire tax debt resolution services to prepare and represent their case with the IRS. Dealing with a licensed tax professional can be essential in achieving a fast and favorable resolution.

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