| Since there are a number of different ways to settle | | | | though, so you can see where you would save |
| back taxes you owe the IRS, the one that is best for | | | | money paying the amount you owe as quickly as |
| you depends on your particular set of circumstances. | | | | possible. |
| The devastation caused by the economic calamity | | | | Partial Payment Installment Agreement |
| brought about by the sub-prime housing collapse has a | | | | If you cannot meet the obligation of an installment |
| silver lining to it if you find yourself in arrears to the | | | | agreement, the partial payment option allows for an |
| Internal Revenue Service. That is because a failing | | | | even smaller monthly payment plan. After all is said |
| economy is the best time to negotiate your delinquent | | | | and done, this could end up being less than the original |
| federal tax debt, and even the dreaded IRS | | | | debt owed. |
| understands that they need to be realistic in their | | | | Penalty Abatement |
| collection efforts and cut tax payers a little slack in | | | | Usually the IRS applies a copious amount of penalties |
| hard economic times. So, if you are in a position to do | | | | over and above the past due tax owed. They can |
| so, now is the time to strike a deal! | | | | add up quickly and can account for the majority of the |
| The following are some of the more commonly used | | | | outstanding debt. However, if you have a compelling |
| ways to settle back taxes owed the IRS: | | | | reason why you are not able to pay the full amount, |
| Offer in Compromise | | | | the IRS has a provision to allow the taxpayer to abate |
| This is an agreement between the taxpayer and the | | | | part of or even all the penalties they have tacked on |
| IRS that allows the delinquent taxpayer to settle back | | | | to the original debt. |
| taxes for less than the full amount owed. The IRS | | | | These are a few of the best ways of the many |
| must be convinced that the amount owed cannot be | | | | available that a taxpayer can use to settle back taxes. |
| paid back in full before they will agree to do an OIC. | | | | The IRS has been known to accept as little as 1% of |
| This is why it is wise to have a professional | | | | what was owed them, so it is not only necessary to |
| representing you, because offers in compromise are | | | | settle with them it can also be very worthwhile to try |
| complicated as the IRS has a number of different | | | | and do so. However, going it alone is not a good idea |
| criteria that they take into consideration to qualify you. | | | | for the overwhelming majority of people. That is why |
| Installment Agreement | | | | you should seek professional help in getting advice as |
| If you cannot pay your settlement immediately they will | | | | to what the best way to proceed is for you. That, in |
| set you up on a plan to make payments in smaller | | | | essence, is the best way to settle back taxes owed |
| more manageable amounts till you are paid up. You | | | | the IRS. |
| are still going to be charged interest and penalties | | | | |