What Types Of IRS Tax Debt Settlements Are Available To Me?While there are many IRS tax resolution options available, there are just 3 main options available to settle a tax debt for less than the total amount owed.
- IRS Offer in Compromise (OIC) Program – The OIC is better than ever since the IRS recent changes to the program. More delinquent taxpayers are qualifying now than ever before.
- IRS Partial Payment Installment Agreement (PPIA) – The PPIA is a hybrid resolution that is part Installment Agreement and part OIC. It allows you to pay less than the total amount of the tax debt over time.
- IRS Penalty Abatement – It is likely that your total tax debt includes the original tax that was accrued, penalties and interest. The penalties may be up for negotiation depending on the circumstances surrounding the accrual of your tax debt.
In addition to the 3 resolution options listed above, Currently Not Collectible Status may also be used to successfully settle a tax debt in some cases.