For many Americans, dealing with IRS debt can be a daunting task. The burdensome tax codes and red tape can be confusing to navigate and intimidating to deal with. Fortunately, the IRS provides numerous options for tax debt relief. There are numerous programs available to taxpayers who may be facing financial hardships. From tax settlements to installment plans to debt forgiveness programs, the IRS provides a number of viable debt relief options tailored to the individual taxpayer.

One of the most common debt relief programs that the IRS offers is an installment agreement. This allows taxpayers to pay their tax bills in manageable and affordable payments over a period of time. This type of plan can be beneficial to taxpayers because it can immensely reduce their tax debt and make payments more manageable. Another benefit is that it will incur a much lower interest rate since the IRS will charge interest for the delinquent taxes owed.

Taxpayers may also take advantage of an Offer in Compromise (OIC). An OIC is an agreement between the taxpayer and the IRS that allows qualified taxpayers to pay less than the full amount owed. It can also provide a resolution to a tax debt that is not possible with a payment plan. In order to qualify for an OIC, taxpayers must meet certain criteria based on their financial situation.

The IRS also offers a Currently Not Collectible (CNC) status to taxpayers who simply cannot afford to pay their taxes. Through this program, the IRS will suspend collection activity on a taxpayer’s account and place them on CNC status while they establish a budget and attempt to resolve their debt.

For taxpayers who are unable to ever pay their taxes, the IRS may grant partial or complete forgiveness of their debt. As mentioned above, most taxpayers must meet certain qualifications to be eligible for forgiveness. In some cases, taxpayers who qualify may receive a release of debt from the IRS.

Overall, the IRS provides numerous debt relief options that can greatly reduce a taxpayer’s overall debt and help them become financially secure. Taxpayers who are struggling to pay their taxes should explore all of their options. With the help of a tax professional, taxpayers can navigate the tax codes and find the debt relief program that works best for their individual situation.