Not some things in life can be stressful than having a debt to the IRS, especially if you can’t lay your hands on it. Luckily, you have some options to pay off your tax debt, depending on your situation. IRS provides some payment options.

There are some ways you can fully or partially settle your tax debts with the IRS, from abatements to installment agreements. Take a look at every method and consider which sounds like it might work for you.

Offer in Compromise

This plan involves setting final limits for payments that are substantially lower than the usual figure. Through talking to IRS about this measure, it becomes much easier for individuals to settle debts that are higher than they’d possibly afford. Everyone may help to see if you can acquire an offer in a compromise negotiated for you.

Try An Installment Agreement

As of October 4, 2017, IRS expanded Streamlined Installment agreements and amendments stayed in place. Taxpayers who owe from USD$50K to USD$100K may get into streamlined installment agreements to pay debts over seven years.

Streamlined means that IRS won’t investigate your financial situation, and you’ll need some forms to fill out.

Tap A Professional For Help

Tax debts can be a bit tricky. This is the reason why consulting certified public accountants or financial planners to ensure that you’re handling your tax case in the best way.

In terms of dealing with the IRS and tax prep, you must definitely work with an accountant. As far as a planner or financial coach, this could be helpful for individuals to see what opportunities they have when it comes to their cash flow. In some cases, it helps to lay it out and see a bigger picture.

Deferment

If you can’t pay off your tax debt, you may ask IRS to delay collection temporarily. The debts don’t disappear and they’ll increase because of interests and penalties. Once your financial situation is better, you’ll have to make some payments. However, deferments could be enough to get you back on your feet before handling your tax debts.

Reasonable Cause Penalty Abatement

Penalty abatement for a reasonable cause can be beneficial if you’re experiencing a particular type of difficulty. With this type of abatement, IRS could agree to get rid of tax penalties if you could show that you had some good reasons to earn that penalty.

For instance, if natural disasters made it impossible for you to pay for what you owed and if you can’t access records you need and that stopped you from filing. If such situations sound similar to these, you could talk to tax advisers to determine if you qualify for penalty abatement.

Dealing with tax debts can be confusing and frustrating, but there’s always a light at the end of the tunnel. Pay attention to taking steps such as avoid levies and liens as much as possible, arrange payment plans with IRS, file your taxes, and understand the reason why you have tax debts. If you require more support, there are tax experts who can help you with all the confusing paperwork and jargon.