The IRS Tax Debt Relief Program helps individuals and businesses manage, reduce, or resolve their tax debts. These programs aim to provide financial relief, prevent aggressive collection actions, and create manageable payment plans.

Key IRS Tax Relief Options

1. Installment Agreements (Payment Plans)
   • What It Is: Allows you to pay your tax debt in smaller, more affordable monthly payments over time.
   • Eligibility: Typically available for those who owe $50,000 or less in combined taxes, penalties, and interest.
   • Types:
     • Short-term (up to 180 days).
     • Long-term (up to 72 months).

2. Offer in Compromise (OIC)
   • What It Is: Settle your tax debt for less than the full amount owed if you can’t pay in full or if doing so would cause financial hardship.
   • Eligibility:
     • Must prove inability to pay the full amount.
     • Requires completing Form 656 and submitting financial details.

3. Currently Not Collectible (CNC) Status
   • What It Is: Temporarily halts collection efforts if you can prove that paying your debt would create severe financial hardship.
   • Eligibility: Must demonstrate inability to cover basic living expenses.

4. Penalty Abatement
   • What It Is: Waives penalties for taxpayers who show reasonable cause for failing to file or pay on time (e.g., illness, natural disaster).
   • Eligibility: Requires written request and supporting documentation.

5. Innocent Spouse Relief
   • What It Is: Removes tax liability from one spouse if the other committed tax errors on a jointly filed return.
   • Eligibility: Must prove lack of knowledge about the tax issues when the return was signed.

6. Fresh Start Initiative
   • What It Is: Expanded programs for Installment Agreements and Offer in Compromise to make tax debt resolution more accessible.
   • Features:
     • Higher threshold for installment agreements.
     • Simplified process for lien withdrawals.

Steps to Apply for Tax Relief

1. Assess Your Debt: Request a transcript from the IRS to confirm your owed amount.
2. Choose a Relief Option: Match your financial situation with the most suitable program.
3. Gather Documentation: Prepare financial records, tax returns, and other relevant details.
4. Submit Application: Complete required forms (e.g., Form 9465 for Installment Agreement, Form 656 for OIC).
5. Follow Up: Respond promptly to IRS requests and stay updated on your application status.

When to Seek Professional Help

If your tax situation is complex or overwhelming, consider consulting a:

• Tax attorney.
• Certified public accountant (CPA).
• IRS Enrolled Agent.

These professionals can help you navigate the system and improve your chances of securing relief.

For detailed information or to apply, visit the IRS website.