I am often asked, “I owe the IRS, what should I do?”
There are the main options available to you:
- Fight the Debt
- Pay the Debt in full
- Pay part of the Debt
- Not Pay the Debt at all
Fight the Debt
- File returns to replace the Substitutes for
Returns that the IRS created for you. - Penalty Abatement
- Innocent Spouse Relief
- Fight the tax based on technical reasons.
Pay the Debt in full
- Paid the balance in full in one payment
- Request an Installment agreement
Pay part of the Debt
- Request an Offer in Compromise based on Doubt as
to Collectability - Request a Partial Pay Installment agreement
Don’t pay the Debt
- Wait until the statute of limitations expires
- Request an Offer in Compromise based on either:
Doubt as to Liability or Effective Tax Administration - Discharge in Bankruptcy
- Request “Currently Not Collectible” status
As a practical matter, most people with tax debt only have two, maybe three options available to them given the details of their situation.
Jeff Roltgen, Tax Rescue CPA
Jeff@TaxRescueCPA.com
www.TaxRescueCPA.com
