Tip 5: Get streamlined.
This is the best option for taxpayers with large debts to the government. To use this route, you must follow certain requirements such as filing all your past tax returns and not entering into an installment agreement within the last five years.
Your tax relief options are not as limited as you may think. Taxpayers can take up to 84 months—10 years from the date of assessment—to repay their debt if they stay in compliance with their terms, and they may be eligible for a number of other benefits that would help them pay off the remaining balance.
This is usually limited to the balance due. If you agree to sign a waiver, the IRS may extend this period of time beyond that if needed. The IRS will not place a lien on assets and income when paying via direct debit or payroll deduction program with outstanding tax debt.
When a tax bill becomes too much to handle, the only course of action is honesty and creating a budget that can cover your debt.
“Remember that it’s never too late to pay your taxes, even if you temporarily can’t afford it. You will always be better off for taking this route than not doing so in the first place,” stated Heath.