| If the IRS has contacted you because you owe | | | | something rather than nothing, and perhaps you can |
| money on your federal taxes, you may think there's a | | | | even get them to agree to pennies on the dollar. |
| one-size-fits-all solution. That's not so, and it helps to | | | | Another solution is to plead poverty and have the fines |
| know what the possibilities are so you can find the one | | | | reduced or eliminated. This is called penalty abatement. |
| that suits your situation. Then you're in a position to | | | | You may not realize that when you don't pay your |
| negotiate wisely with the IRS. | | | | taxes, you are not only at some point asked to pay |
| There are many ways your tax debt can be settled. | | | | them but also interest and a heavy penalty. If you can |
| You can ask the IRS to negotiate a compromise | | | | get the heavy penalty taken away, you're at least only |
| payment with you. That's called office in compromise, | | | | dealing with the debt itself and perhaps the interest. |
| and it's like any other debt situation. It can be | | | | When you look at the number you owe without the |
| advantageous to the institution you owe to get | | | | penalties, it will seem much more manageable. |