Are you struggling with IRS debt? You’re not alone. Facing the Internal Revenue Service can be intimidating and overwhelming, but there are ways to resolve your debt.

In this article, we’ll discuss five of the best ways to resolve IRS debt, including negotiating an IRS payment plan, applying for an offer in compromise, disputing an IRS debt, and filing for bankruptcy. Whether you need a short-term or long-term solution, we’ve got you covered!

We’ll help you understand your options so that you can make the right decision for your financial situation.

Understanding Your Options

You’ve got options for resolving your IRS debt, so don’t panic!

The most effective way to resolve IRS debt is by entering into an installment agreement. This allows you to pay off the amount owed in monthly installments over a specified period of time.

Additionally, you may qualify for an offer in compromise which involves making a lump sum payment or series of payments that is less than the full amount owed.

Another option is requesting penalty abatement, which could waive some or all of the penalties associated with your debt.

Finally, if no other resolution works for you, bankruptcy may be an option worth considering.

Take some time to research each option and determine what works best for your unique situation.

Negotiating an IRS Payment Plan

Having trouble paying off your tax debt? Negotiating an IRS payment plan could be the answer you’re looking for. It’s a way to work out an agreement with the IRS on how to pay back your overdue taxes.

Here are four steps for negotiating an IRS payment plan:

  1. Contact the IRS as soon as possible.
  2. Calculate your ability to pay and develop a payment plan proposal.
  3. Submit Form 9465, Installment Agreement Request, along with necessary documents and fees.
  4. Make sure you have all of the paperwork required by the IRS and follow through on payments as agreed upon in your plan contract.

By taking these steps, you can effectively negotiate an agreeable payment plan with the IRS that meets both parties’ needs and helps you get back on track financially.

Applying for an Offer in Compromise

If you’re struggling to pay your taxes, an Offer in Compromise may be the solution for you. This is a special program created by the IRS to allow taxpayers with severe financial difficulties to settle their tax debt for less than they owe.

An Offer in Compromise is based on the idea that it’s better for the government to get something than nothing at all. To qualify, you must have filed all required returns and can’t have any unresolved disputes with the IRS. You also need to demonstrate that paying your full tax debt isn’t possible, either through a lump sum or payment plan.

If accepted, you’ll make a one-time payment or ongoing payments over time until your debt is resolved. Applying can be difficult, so it’s important to seek help from an experienced professional who can guide you through the process and maximize your chances of success.

Disputing an IRS Debt

Nobody likes dealing with the IRS, but if you believe you don’t owe a debt they’re claiming, disputing it is your right. You can submit form 9423 to dispute your debt. This form must be accompanied by evidence that supports your case and should explain why you disagree with the IRS’s assessment.

It’s important to note that once you’ve filed form 9423, all collection activities against you will stop until a resolution has been reached. Additionally, interest on the disputed amount will also cease during this period.

If the IRS agrees with your dispute and abates any of the original debt, it may take up to four months for them to process it and issue a refund.

Filing for Bankruptcy

Filing for bankruptcy can be an intimidating process, but it’s often the best way to get back on your feet financially. It’s important to consider if you’re eligible and what type of bankruptcy is right for your situation.

Before making any decisions, it’s best to consult a financial expert or attorney with experience in tax laws and IRS debt resolution. Bankruptcy can stop any collection activity, including garnishments and levies from the IRS. However, filing for bankruptcy won’t discharge all types of tax debts; some may still remain after the completion of your case.

If you’re considering filing for bankruptcy, make sure you understand all of the consequences before taking action.


You’ve now learned your options for resolving IRS debt.

Negotiating a payment plan, applying for an Offer in Compromise, disputing the debt, or filing for bankruptcy are all viable solutions depending on your individual situation.

Before making any decisions, though, it’s important to consult a professional who can evaluate and advise you on the best course of action.

Don’t let IRS debt overwhelm you; take control by exploring these options today.