There are actually many solutions that a taxpayer with back taxes can consider to be able to settle the problem with Internal Revenue Service (IRS). Here are some of these solutions:
1. Offer in Compromise – this form of agreement will give the taxpayer a lesser debt with IRS. However, in this form of agreement, the taxpayer needs to pay the debt immediately and in one payment alone.
2. Innocent Spouse Relief – this form of payment would be able to clear a person from the tax debt of his spouse. But still, there are certain conditions and instances that are needed to be considered before a spouse is given this kind of privilege.
3. Penalty Abatement – a taxpayer can have a reduced debt after some scrutiny and considerations. After the person is able to defend his incapacity to pay the tax debt due to disability, unemployment, and/or less income, he can be granted this privilege and pay lesser than the principal debt.
4. Installment Agreement – an agreement wherein the taxpayer would still need to pay the full amount of tax debt. However, instead of paying the debt in just one payment, the person is given the chance to pay the back taxes in installment. Usually, this transaction will provide the person a 60-month period of payment.
Other than these, there are still other ways to solve tax issues with IRS. However, these processes can only be done with the help of the right people especially those who already have the background in handling tax problems.
