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Tax Relief Payment Options for Paying Back Taxes to the IRS

If you have received threatening IRS collection notices or face debilitating IRS levies, liens, and seizures, it\'s important to know that the IRS offers several flexible payment options for paying back taxes. You can contact the IRS directly for tax help. However if you owe $25,000 or more, have multiple years of unfiled returns, or the IRS wants to audit you, a highly qualified tax attorney or Certified Tax Resolution Specialist can help you increase your chances of obtaining a properly structured payment plan keeping your life style intact.  He/she may even suggest, if you qualify, to attempt to reduce what is owed.

Qualifying taxpayers can obtain tax relief from tax debt and other collection-related issues even if they can\'t afford to pay their back taxes in full. The options below are designed to help those who qualify for tax relief through payment options that help settle tax liability for less than the amount owed or with periodic payments to eliminate tax debt over time.

IRS Payment Options for Back Taxes #1: Offer in Compromise An Offer in Compromise is one of those easier-said-than-done options, but for qualifying taxpayers, it is worth investigating for potential savings in back taxes and IRS penalties. An experienced tax attorney or Certified Tax Resolution Specialist will tell you that the first step is to get your financial house in order. Make sure you are in otherwise good standing with the IRS with no other unfiled returns or back tax debts. The IRS prefers to get its pound of flesh in full and will consider your settlement offer only if you can prove that you are in unusual financial distress. Life-changing events like the death of a family member, job loss, and serious illness in your family, natural disaster or military deployment will garner you consideration.


A Certified Tax Resolution Specialist knows what Offers tend to qualify and have a good chance of acceptance by the IRS. A tax attorney or Certified Tax Resolution Specialist can also help you formulate a plan you can live with and that the IRS is likely to accept, and present it to them, justified with your financial status documentation. The trick is convincing the IRS that they won\'t be able to get any more money out of you if they pursue forced collection efforts.

With an Offer in Compromise, the IRS agrees to settle your tax debt for less than the amount you actually owe, requiring a lump-sum payment (which can be made in 5 monthly payments)  or a 24-month short term deferred payment arrangement.

IRS Payment Options for Back Taxes #2: Lump Sum IRS Payment The quickest way to get the IRS off your back is with a lump sum payment representing full payment of what\'s owed including accrued penalties and interest.

IRS Payment Options for Back Taxes #3: Installment IRS Payments Taxpayers with debt who are unable to pay off their liabilities in full in one lump sum but who have the resources to pay the debt off over time may be able to qualify for an IRS Installment Agreement (also known as an IRS Payment Plan). Under the program, qualifying taxpayers make monthly payments that will over time eliminate the tax debt. Think of this like a car payment — paying a small amount regularly to pay off a large amount in time.

Getting relief from back taxes by setting up an installment plan is pretty straightforward if you owe less than $25,000, but if you owe more know that professional tax help from a tax attorney or Certified Tax Resolution Specialist can help keep the monthly payments manageable and keep your lifestyle intact.

And once you qualify for an installment agreement, it is imperative that you stay compliant by filing all future income tax returns on time and pay all future tax bills when due. If you lapse, the IRS can default/revoke your agreement and send the collection hounds after you. They in turn may garnish your wages and levy your bank accounts, property, future earnings and business until the debt is satisfied.

If for some reason you can\'t keep your agreement, call you tax attorney or Certified Tax Resolution Specialist immediately and they will help you take pre-emptive action to keep you on the road to financial recovery.

For more information on achieving a tax resolution for your IRS problems, visit for a free tax relief consultation or call 888-851-5894.


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About the Author

Michael Rozbruch is one of the nation\'s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA and the founder of Tax Resolution Services. He helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.