So you owe IRS Back Taxes, how can I best solve my IRS Problem?

Michael Sullivan Fresh Start Tax Expert, Former Agent and Teaching Instructor with the IRS, since 1982, A plus rated.

There are different Ways to Solve Back IRS Debt Problems to get tax relief for IRS back taxes.

Here are the Different Ways to help SOLVE  your IRS Problem.



There are generally  5 ways or programs that IRS has for solving Tax Debt.

1. By payment in full,

2. By monthly or installment payments,

3. By the Acceptance of an offer in compromise, (this is how your completely eliminate the tax debt)

4. By statue expiration. (another way to  your completely eliminate the tax debt)

5. For those who cannot pay their debt IRS has a non-collectible or hardship program.


The most important aspect of solving IRS tax debt cases is completely dependent on the individual or business financial statements, that is the 433,a, 433f, and or the 433b.

Your current documented financial statement determines all.

You  must support your financial statement by documentation such as bank statements, pay stubs, copies all bills and expenses.

IRS only allows certain expenses that are considered necessary living expenses.

There are charts available on what IRS allows.

Anything not on those charts are disallowed and this is what trips up most taxpayers. IRS sticks to a strict standard. The charts are called the IRS national standards.

Notes about the Way for Solve your IRS Debt Problem

All your tax returns will have to be filed before IRS will work and close and solve your case.

1. Hardship or Currently not collectible.

The Internal Revenue Service places 40% of their open collection inventory into a hardship or currently not collectible status. after IRS takes your current financial statement and applies the national standards they determine you do not have the money at this time make payments or full pay the tax liability.

Your case will go into hardship or currently not collectible for a period of 2 to 3 years and after that the IRS will kick the case back out to the field for another review.

Please be advised that your case will come back out to the field once again and you will be reevaluated at that time.

2. Payment agreements,/Monthly installments.

 The Internal Revenue Service places approximately 6.5 million cases into payment or installment agreements.

There are different ways to get placed into an installment agreement and it depends on whether you can pay the tax liability off within a given period of time or you need to make monthly payments because of your current financial statement. You need to be familiar with the programs offered by Internal Revenue Service to make sure you do not get put in a situation that will default.

3. The Offer in Compromise Program

Last year the Internal Revenue Service receives 78,000 offers in compromise. IRS accepted 38% of those offers in compromise for a settlement of $9500. Do not be fooled by this $9500 figure that I throw out because it’s simply a national average and varies from case to case.

There is an IRS pre-qualifier  tool that you can use yourself to figure out whether you are a qualified candidate.

The IRS spends a lot of due diligence before they accept an offer in compromise.

It is possible for the IRS to spend over 20-40 hours working an offer in compromise.

IRS uses the Accuriant search engine, Google in a variety of other searches to check on assets and histories of taxpayers and businesses.

You want to make sure you are accurate and truthful on your financial statement.

The higher the dollar case the greater the due diligence.

Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.

The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.

One base rule for the offer in compromise program:

Generally IRS is only concerned about your income and assets. This includes your equity in your home, pension plans and IRA’s.

One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.

After a quick review of your current financial statement we will able to help and determine the best way to solve your IRS problem.

Call us today for free consultation and speak to a true IRS tax professional.

We been in practice since 1982 and are A+ rated by the Better Business Bureau. We have on staff tax attorneys, tax lawyers, CPAs, former IRS agents, managers and teaching instructors.

Owe IRS Back Taxes, Learn How To, Solve Your IRS Problem,  Former IRS Agent