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20+ Years Experience
Enrolled Agent (EA)
Certified Tax Resolution Specialist
Published Author
IRS Tax Debt?
Understand Your Options
Owing money to the IRS can be difficult, particularly when penalties and interest continue to accumulate or collection activity has begun.
The appropriate way to address tax debt depends on your individual circumstances. LP Tax Services LLC helps individuals and business owners understand their tax situation, determine what resolution options may be available, and address outstanding federal tax liabilities.
IRS Balances Due
Multiple Years of Tax Debt
Installment Agreements
Currently Not Collectible
IRS Liens and Levies
Offers in Compromise
Penalty Relief
Tax Debt Involving Unfiled Returns
Tax Resolution Options
There is no single solution for every tax debt. The appropriate resolution depends upon factors such as the amount owed, filing compliance, income, expenses, assets, and ability to pay.
Installment Agreement
An installment agreement may allow an outstanding tax liability to be paid over time through monthly payments.
Offer in Compromise
An Offer in Compromise may allow qualifying taxpayers to settle a tax liability for less than the full amount owed. Eligibility depends upon the taxpayer's financial circumstances and IRS requirements.
Currently Not Collectible
When a taxpayer is experiencing financial hardship and does not have the present ability to make payments, the IRS may temporarily suspend active collection.
Penalty Relief
Certain taxpayers may qualify for relief from some IRS penalties based upon their circumstances and applicable IRS requirements.
Lien & Levy Matters
When IRS collection activity has progressed to liens or levies, the underlying tax liability and available collection alternatives need to be evaluated.
Tax Compliance Comes First
Resolving tax debt often requires addressing outstanding filing requirements. If tax returns are missing, those filing issues generally must be addressed as part of the overall resolution.
The Right Resolution Depends on Your Circumstances
Simply owing the IRS does not automatically determine which resolution option is appropriate.
Your tax filing history, amount owed, income, necessary living expenses, assets, and overall financial circumstances can affect the alternatives available to you.
LP Tax Services LLC evaluates the facts of your situation before recommending a course of action. The objective is to identify an appropriate resolution based upon your circumstances and applicable IRS requirements.
Frequently Asked Questions
Some taxpayers may qualify for an Offer in Compromise, but eligibility depends upon financial circumstances and IRS requirements. Each situation must be evaluated individually.
Paying the entire balance immediately is not the only possible resolution. Depending upon your circumstances, payment arrangements or other collection alternatives may be available.
Unfiled returns generally need to be addressed as part of resolving an outstanding tax liability. We can evaluate both the filing and tax-debt issues as part of the overall situation.
Take the First Step Towards Resolving Your Tax Debt
If you owe the IRS or are facing IRS collection activity, the first step is understanding your situation and the options that may be available.