If you are having trouble paying tax debt, the Internal Revenue Service (IRS) wants to hear from you. Rather than avoiding your money woes, it is important to seek out help with debt.

Consider the following tips when trying to resolve issues with tax debt:

• Paying part: The IRS would rather receive a partial payment than no payment at all. Paying part of your tax bill would reduce the amount of penalties and interest owed.
• Payment arrangements: You could qualify for a short-term payment agreement to get help with debt. This would allow you to pay off your tax debt in full within 60 to 120 days. Getting such an agreement depends upon your situation but could allow you to reduce the amount of penalties and interest paid.
• Installment agreements: An installment agreement stretches out the payments for a longer period of time. If less than $25,000 is owed, there is an online form that can be filled out to request a plan. If you owe over $25,000 there may be additional information that needs to be processed.
• Delaying payment: If you are experiencing extreme financial hardship, you may be eligible for a temporary delay in paying the tax bill until things improve. During that time interest and penalties would still accrue and the government could file a tax lien.
• Settling tax debt: An Offer in Compromise (OIC) would allow you to settle tax debt for less than what is owed. You won’t be allowed to set up a debt settlement if the IRS believes you have the ability to repay the full amount as a lump sum or through an installment plan. Usually an OIC is set up if there is doubt that a taxpayer could pay the full amount, doubt that the amount of tax assessed is correct or there is some extreme circumstance that needs to be considered even if the tax payer has the ability to repay their debt.

Most people are afraid the IRS will come after them if they don’t pay taxes. But if you come out of hiding and work to address any tax woes, the IRS may work with you to come up with a solution.

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