Question: I owe 78,000 to the IRS for back taxes. I’m constantly getting threatening letters from them. This has become a big problem in my life that I have no idea how to solve. Can you help me?
Answer: For what it’s worth, take some comfort in knowing that you are not alone. There are tens of millions of Americans in similar situations, dealing with IRS debt hanging over their heads and concerned about how it will affect their future.
The good news: You have options. Once you and your tax resolution specialist has analyzed your current financial situation, the next step is to negotiate a resolution with the IRS. You will most likely be looking at one of two options – the Offer in Compromise or the Installment Agreement.
The Offer in Compromise (OIC) was created for people who owe a substantial amount to the IRS but who, for whatever reason, are unable to pay their tax debt off, even over time. The Offer in Compromise allows taxpayers to negotiate a settlement amount that will take care of the entire tax debt once and for all. This settlement agreement can lower the tax debt by a significant amount, however there are strict eligibility requirements.
If you do not qualify for the OIC then you may consider the Installment Agreement, which allows you to pay off your debt over time by making manageable monthly payments, much like a commercial installment loan.