10 IRS Tax Debt Relief Programs are given below
Navigating IRS tax debt can be daunting, but numerous programs are available to help taxpayers manage and reduce their obligations. Here’s a list of the top 10 IRS tax debt relief programs, along with their contact information and services.
1. Offer in Compromise (OIC)
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: The Offer in Compromise program allows eligible taxpayers to settle their tax debt for less than the full amount owed. This option is available for those who cannot pay their tax liability or if doing so would create financial hardship.
2. Installment Agreement
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: An Installment Agreement allows taxpayers to pay their tax debt in monthly installments. The IRS offers various plans, including short-term and long-term options, to fit different financial situations.
3. Currently Not Collectible (CNC) Status
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: The CNC status temporarily suspends IRS collection activities if a taxpayer is experiencing severe financial hardship. Interest and penalties will continue to accrue, but the IRS will not take any enforcement action.
4. Penalty Abatement
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: Penalty Abatement can remove or reduce penalties for failing to file or pay on time if there is a reasonable cause, such as a natural disaster, medical emergency, or incorrect advice from a tax professional.
5. Innocent Spouse Relief
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: Innocent Spouse Relief provides relief from additional taxes owed if a spouse or former spouse improperly reported or omitted items on a joint tax return.
6. Partial Payment Installment Agreement (PPIA)
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: The PPIA allows taxpayers to pay a portion of their tax debt over time. Payments are based on what they can afford after accounting for essential living expenses.
7. Tax Lien Withdrawal
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: Tax Lien Withdrawal removes the Notice of Federal Tax Lien if the taxpayer pays the debt in full or sets up a Direct Debit Installment Agreement. This can improve credit scores and ease financial transactions.
8. First-Time Penalty Abatement (FTA)
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: FTA is available to taxpayers who have been compliant with filing and payment obligations and have not previously had penalties. It provides a one-time waiver of certain penalties.
9. Streamlined Installment Agreements
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: Streamlined Installment Agreements are available for taxpayers who owe less than $50,000 and can pay off their debt within 72 months. The approval process is faster and less stringent.
10. Statute of Limitations on Tax Debt
Phone Number: (800) 829-1040
Address: IRS Office, P.O. Box 9941, Ogden, UT 84201-0039
Website: www.irs.gov
Services: The IRS has a 10-year limit to collect on tax debt, known as the Collection Statute Expiration Date (CSED). After this period, they can no longer pursue collection.
Conclusion
Dealing with IRS tax debt can be challenging, but these relief programs offer valuable options to manage and reduce your obligations. Each program is designed to address different financial situations, so consult with a tax professional to determine the best course of action for your specific needs.
