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Tax Debt Relief Programs offered by IRS

Patrick Walter
Tax Debt Relief Programs offered by IRS

For taxpayers unable to meet their tax obligations, the IRS assists with tax filing through tax debt relief programs. IRS Tax debt relief programs help in reducing the burden and promote tax filing. Universal tax cuts, special programs that help certain taxpayer groups, or programs that promote tax filing are some examples of broader tax relief programs. If you are wondering whether IRS debt relief is available to you in Dallas, the answer is possibly yes. Consult a debt attorney or tax lawyer in Dallas to find out your eligibility. In this blog, we present a brief overview of the IRS tax debt relief programs.

Installment Agreements

Delay in paying taxes can result in hefty penalties and interest and even criminal prosecution in adverse cases. To avoid such consequences, the IRS provides an option to pay unpaid tax dues in monthly installments over an extended time. There are short-term and long-term IRS tax installment agreement plans. Since installments give you the benefit to pay your taxes over a longer duration, the tax liability can be reduced to a great extent. 

Innocent Spouse Relief  

The IRS might be willing to lower or waive the taxes, penalties, and interest charges that were assessed on your account in case of a joint tax return, if your spouse has misreported some aspects. You can apply for Innocent Spouse Relief with Form 8857 with any necessary supporting documentation. The request must be made within two years of the IRS's first collection effort. 

Offer in Compromise 

Another option to settle tax liability is through an Offer in Compromise (OIC), which permits you to pay less than what you owe. This is applicable when you:

  • don’t have enough money or assets to pay back during the statutory period.
  • are unable to pay, doing so would be unfair or inequitable because of a mitigating condition, or it would put you in a difficult financial situation 
  • Have reason to believe that you have been wrongly charged due to a tax examiner's incorrect application of the tax code

Regardless of the reason for applying for an OIC, keep in mind, you should have submitted the required tax filings, made required anticipated payments for the current tax year, and received bills for which you intend to ask for an OIC. 

‘Currently not Collectible’ Status


If you prove that you are unable to pay taxes currently, you can request the IRS for a ‘currently not collectible’ status. It does not erase your debt, the primary amount remains the same along with the penalties and interest but you don't have to compromise your basic living standards in order to pay your tax liabilities. The IRS reviews your status annually to check whether taxes can be collected.

Final Word 

Tax debt is complex to deal with but with the debt relief programs offered by the IRS, you can surely reduce your burden to some extent. Now that you are aware of the programs offered by the IRS, you can consult an IRS attorney nearby to get clarity about the best tax solution for your financial situation. If you are in and around Dallas, consult an experienced IRS lawyer for the best legal advice.

Patrick Walter
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