1. Full payment. If you can afford it, paying your tax debt is full is the easiest and fastest way to stop IRS harassment. Making payments by credit card, cashing out your savings, or tapping into home equity can put you on the road to financial recovery.
2. Set up a payment plan. We can help you set up a monthly payment plan. Normally, the IRS wants your tax debt paid off in 3 years. You can set up a payment plan if all your tax returns are filed. We will negotiate with the IRS to set up a payment plan with the smallest monthly payments possible. You can always pay off your tax debt sooner if you have the money, but we help you set up the smallest possible payment plan available so that you can stay in full control of your finances.
3. We can submit an offer in compromise. This option will reduce the amount of debt you owe to the IRS. The IRS will painstakingly scrutinize your current financial situation, and use a formula to determine exactly how much they think you can afford to pay towards your taxes. (This is called the "reasonable collection potential.") If your "reasonable collection potential" is less than your tax debt, you can settle your taxes for less than what you owe. An Offer in Compromise is a lengthy process ? up to a year or more. We work with you every step of the way to prepare a thorough, accurate, and well-documented Offer in Compromise.
4. You can be declared Currently Not Collectible. The IRS will carefully review your current financial situation. If the IRS determines that you have no ability to pay, the IRS will place a hold on any and all collection activity. Having your account declared not collectible buys you time, since the IRS only has 10 years from the date you filed your tax return to collect the taxes you owe. Normally, the currently not collectible status lasts for a year or so, but can be easily renewed if your financial situation has not dramatically improved. This may also buy you time to figure out how to pay off your tax debt, such as filing an offer in compromise, or figuring out how to pay over time.