An old saying goes, “In this world, nothing is certain except death and taxes.” But what happens when the latter seems too much of a burden to bear? Often, when life takes unexpected turns, we may find ourselves swamped with tax debt and a formidable opponent: The Internal Revenue Service (IRS). However, contrary to popular belief, the IRS is not your adversary but a partner ready to help you sort out your tax problems.

If you’re facing tax debt, here are five helpful tips to set things right with the IRS.

Explore Programs For Tax Forgiveness

Your first course of action should be exploring programs provided by the IRS itself. You may be surprised to learn that you can get rid of IRS debt with the IRS program for tax forgiveness, also known as the Offer in Compromise (OIC).

This program allows taxpayers to settle their tax debt for less than they owe if they can prove that paying the full amount would cause financial hardship. It’s not a one-size-fits-all solution and requires a comprehensive understanding of your financial situation, but it could potentially save you a significant amount. Always consult with a tax professional to determine if you’re eligible for this program.

Installment Agreements

If you’re not eligible for tax forgiveness, an installment agreement may be your next best option. This payment plan allows you to pay off your debt over a period of time, in monthly installments you can manage.

The IRS offers various installment plans, depending on how much you owe and your financial situation. If you owe $50,000 or less, you can even apply online. Remember, though, interest and penalties will continue to accrue until the debt is paid in full.

Penalty Abatement

If a significant portion of your tax debt consists of penalties, consider applying for penalty abatement. The IRS may remove penalties for late filing or payment if you can demonstrate reasonable cause—like a serious illness, a natural disaster, or ignorance of the tax laws.

The IRS also offers the First Time Penalty Abatement policy for taxpayers who have a clean compliance history, meaning no penalties for the prior three years. Like with the OIC, it’s best to consult with a tax professional before pursuing penalty abatement.

Use A Tax Advocate

A tax advocate is a free, independent service within the IRS that ensures your rights as a taxpayer are upheld.

If you’re experiencing financial hardship due to your tax debt, or if the IRS hasn’t resolved your tax issues promptly, a tax advocate can help. They can guide you through the process, explain your options, and assist in communication with the IRS.

Hire A Tax Professional

Finally, consider seeking the advice of a tax professional. Tax laws can be complex and navigating them can be a daunting task. A tax professional can help you understand your situation better and guide you in making the right choices. They can also negotiate with the IRS on your behalf and may be able to secure a more favorable outcome. Remember to choose a reputable professional with experience in tax debt resolution.

Conclusion

Tax debt can feel like an insurmountable obstacle, and dealing with the IRS can seem intimidating. However, remember that the IRS is not your enemy but a partner willing to work with you to find a solution.

With the right approach and the right help, you can tackle your tax debt and move toward financial freedom. Whether you get rid of IRS debt with the IRS program for tax forgiveness, set up an installment agreement, seek penalty abatement, use a tax advocate, or hire a tax professional, remember that there are multiple ways to set things right. Don’t lose hope and don’t avoid the issue.

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