Debt Tax

IRS Offers Expanded Relief Options for Taxpayers

Learn about Offers in Compromise (OIC) to Settle Tax Debt

Breaking News: IRS Announces New Payment Plans and Options for Taxpayers Struggling to Pay

The Internal Revenue Service (IRS) has announced expanded payment plan options and other relief measures for taxpayers who owe tax debt but are facing financial hardship. One of the options the IRS offers is an Offer in Compromise (OIC), which allows taxpayers to settle their tax debt for less than the full amount owed.

Tax debt occurs when you fail to pay your taxes in full by the filing deadline, which is typically April 15. If you are unable to pay your tax debt in full, the IRS can help you explore various payment options, including installment agreements and offers in compromise.

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that allows the taxpayer to settle their tax debt for less than the full amount owed. To qualify for an OIC, taxpayers must meet certain criteria, including having a legitimate reason for being unable to pay their tax debt in full, such as financial hardship or exceptional circumstances.

The IRS has expanded its payment plan options to make it easier for taxpayers to manage their tax debt. Taxpayers can now request a short-term payment plan of up to 120 days or a long-term payment plan of up to six years. Taxpayers can also apply for an installment agreement online through the IRS website.

If you are struggling to pay your tax debt, it is important to contact the IRS as soon as possible to discuss your options. The IRS offers a variety of relief programs to help taxpayers manage their tax debt, including payment plans, offers in compromise, and penalty abatement. By working with the IRS, you can resolve your tax debt and get back on track financially.