
<p>Do you have a tax debt? You&#8217;re not alone. Over <a href="https://bradfordtaxinstitute.com/Content/COVID-19-The-IRS-Goes-Easy-on-Taxpayers-Who-Owe-Back-Taxes.aspx">11 million taxpayers in the U.S.</a> owe the IRS about $125 billion in back taxes.</p>



<p>If you owe back taxes to the IRS, it&#8217;s often a true shocker. It&#8217;s something taxpayers never expect to hear from their accountants or tax consultants. For others, it might be a surprise to file your taxes and find out you owe more money than anticipated.</p>



<p>It&#8217;s a serious thing to deal with, and for many, it creates stressful situations that taxpayers need to address immediately.</p>



<p>The key is to find a plan to resolve the tax debt. It might be paying with cash, using a payment plan with the IRS, or setting up a tax settlement.</p>



<p>If you want a fresh start, keep reading below to learn more about dealing with outstanding tax debt.</p>



<h2 class="wp-block-heading"><strong>Pay Your Tax Debt Now</strong></h2>



<p>The IRS provides taxpayers with several practical options for paying their taxes.</p>



<p>Individual taxpayers can pay their tax obligations using IRS Direct Pay, Electronic Federal Tax Payment System (EFTPS), same-day wire transfer, debit or credit card, cash at a retail partner, check, or money order.</p>



<h2 class="wp-block-heading"><strong>Options for Taxpayers Unable to Pay Right Away</strong></h2>



<p>The IRS provides payment options if taxpayers cannot fully pay their debt.</p>



<h3 class="wp-block-heading"><strong>A Payment Plan</strong></h3>



<p>A quick payment schedule might be an option. Taxpayers are permitted to request a 120-day short-term payment plan. Short-term payment plans are exempt from a user fee.</p>



<p>The option of a longer-term installment agreement or a monthly payment plan is available to taxpayers. Monthly payment plans or installment agreements are subject to a $149 user fee, which can be lowered to $31 if direct debit payments are made.</p>



<p>A financial statement must be included from an individual taxpayer who owes more than $25,000 or from a business that owes more than $50,000. ;</p>



<h3 class="wp-block-heading"><strong>IRS Offer in Compromise (OIC)</strong></h3>



<p>You can settle your tax debt for less than the total amount you owe by making an <a href="https://taxreliefprofessional.com/irs-offer-in-compromise-oic">IRS Offer in Compromise (OIC)</a>. If you cannot pay your entire tax debt or doing so would put you in a difficult financial situation, this may be a viable option.</p>



<p>The IRS takes into account your particular facts and circumstances, such as:</p>



<ul class="wp-block-list"><li>Your ability to pay</li><li>Your income</li><li>Your expenses</li><li>Your asset equity</li></ul>



<p>Utilize the IRS offer in compromise pre-qualifier tool to determine your eligibility and prepare a preliminary proposal.</p>



<p>When your offer represents the maximum amount expected to recover in a reasonable amount, the IRS typically accepts an offer in compromise.</p>



<p>Before making a compromise offer, consider all other payment options. Not everyone is a good fit for the Offer in Compromise program. Check the credentials of any tax expert you hire to assist you in filing an offer.</p>



<h2 class="wp-block-heading"><strong>Catch Up on Your Tax Debt and Set Things Right Today</strong></h2>



<p>If you have a tax debt, don&#8217;t wait to catch up. The sooner you pay off your debt, the less interest and penalties you&#8217;ll have to pay.</p>



<p>You can catch up on your taxes by paying your tax bill now, or by setting up a payment plan with the IRS.</p>



<p>Check out the rest of our blog for more tips on managing your finances.</p>

How to Catch Up If You Have a Tax Debt
