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Tax Debt Relief Programs

Tax Debt Relief Programs

5 Main Tax Debt Relief Programs

There are five main tax debt relief programs:

  1.  Offer in compromise
  2.  Installment Agreements
  3.  Currently Not Collectible
  4.  Penalty Abatement
  5.  Innocent Spouse

Although your back taxes could be disputed on technical terms, the tax could be paid in full or if you are eligible you may qualify for the tax to be discharged in a bankruptcy.

Which Debt Relief Program is Best?

There are several factors that will determine which program you qualify for including the age of the tax debt, the amount owed, your current disposable income, your age and your assets.  For information regarding an offer in compromise visit

There are two main types of installment agreements a hardship installment agreement and a streamlined installment agreement.  In both types of installment agreements, a monthly payment is made towards the tax debt.  In a hardship installment agreement, the taxpayer only has to pay back a portion of the tax debt.  A hardship agreement will protect the taxpayer from levies and garnishments but not tax liens.  A streamlined installment agreement gives the taxpayer 72 months to pay off the tax debt and with this payment agreement, the taxpayer is protected from levies, garnishments, and liens.

In a Currently not collectible status, the IRS suspends their collection efforts temporarily due to a temporary hardship.  When your financial situation changes you will be expected to make arrangements to pay the debt.

Penalty Abatement is offered by the IRS under special circumstances.  For more information see

If you find that you owe the IRS because of the actions of your spouse or ex-spouse you may be able to rectify the situation by filing for innocent or injured spouse status with the IRS.  The IRS has criteria that must be met to qualify as an injured or innocent spouse and the entire process may take six months.  During this time the IRS will contact your spouse or ex-spouse to notify them of the claim.  To qualify as an innocent spouse the tax error must correspond to your spouse.  If you file jointly with your spouse and part of your refund has been applied to your spouse’s legally enforceable past-due federal tax, state income tax, state unemployment compensation debts, child or spousal support, or a federal nontax debt, such as a student loan you may be able to apply for injured spouse allocation.

Help is Just a Call or Email

For a free consultation, you can contact us at, call us at 561-293-3135 or email us at  Work directly with Enrolled Agents with almost 30 years of experience negotiating tax debt.

We are a small company.  You will not get lost in a crowd and you will work directly with an Enrolled Agent, not a case manager.  We promise straightforward solutions for our clients and we deliver tax settlement quickly with no hidden fees.