Reducing IRS Tax Debt is the first step to Eliminating it. Everyone wants to pay as little as possible towards their IRS Tax Debt. And luckily, it is a possibility to have your Tax Debt reduced to the lowest amount possible. However, itís important to note that itís very difficult to work with the IRS to have your debt reduced, even if you know you deserve it!
There are special circumstances that will eliminate the accrued penalties from your IRS Tax Debt. For example, if you were late making payments on your IRS Tax Debt because you were in the hospital and could not pay your Taxes on time, you would qualify for having the penalties removed. If you think you have a circumstance that would allow the penalties to be removed from your IRS Tax Debt, you should contact a professional and see if that is a possibility. You could save hundreds of dollars if you qualify.
Offer in Compromise
Another way to have your IRS Tax Debt greatly reduced would be to settle it with an IRS ďOffer in Compromise.Ē If you qualify, your debt could be cut in half or more - saving you hundreds or even thousands of dollars. But it is no easy task to convince the IRS that you deserve to have your Tax Debt amount lowered. You have to prove that you simply do not have the funds to pay in full.
If you want to have your Tax Debt Reduced, you may need to seek professional help. The IRS is very stingy with its money. They donít want to lose a dime. But if you a hire a professional that knows the ins and outs of the IRSís processes, you may stand a better chance at success.