How Does IRS Tax Resolution Work?

How Does IRS Tax Resolution Work?

IRS tax resolution actually refers to several financial plans, forms, and applications that can help you get relief from IRS penalties for not paying your taxes on time. The best way to get started with your tax resolution is to contact a tax expert who can help you find a strategy that will work for your specific budget and tax situation. Some tax resolution strategies include:

Installment Agreement

An installment agreement is the most basic form of tax resolution. Essentially, an installment agreement is an agreement to pay a certain amount to the IRS each month for up to six years. This is an ideal repayment method since the monthly payment is generally tailored to the taxpayer's income, which allows you to pay back your taxes in small amounts.

With this agreement, you agree to pay back the owed taxes in full. This resolution strategy is most ideal for people who have a small to moderate amount of taxes to repay. If your back taxes are especially high, you may want to consider a different resolution strategy.

Partial Payment Installment Agreement

A partial payment installment agreement is a good option for taxpayers who do not have the ability to settle their tax debt in full. This is a type of installment agreement that prevents the IRS from collecting taxes for more than 10 years from the date the tax debt was assessed. In general, the monthly installments will also be determined by your income.

The IRS understands that some taxpayers will not be able to repay their debts in full, so a partial payment for the total debt is accepted. When the expiration for your payment installment agreement comes to an end, you will not have to continue payments even if you still owe taxes.

Currently Not Collectible

Currently Not Collectible (CNC) is a unique tax resolution tool that allows taxpayers to place their accounts in uncollectible status. When your account is CNC, you will still be considered compliant for any tax agreements you are part of without any enforcement like wage garnishments. Basically, this resolution allows you to recover from any overwhelming payments that are threatening your financial stability.

It's common for CNC to be used when the installment agreement monthly payments are unaffordable. Sometimes this is because your income does not allow you to support your living expenses and your installment agreement. It's important to remember that a Not Collectible status is a temporary tool; when your financial circumstances change, you will be expected to resume your installment agreement.

Innocent Spouse Relief

Most married people file taxes jointly, but this means that both spouses are on the hook for any tax debt that needs to be repaid. However, if you are innocent in reporting income improperly or claiming improper deductions or tax credits, then you may not need to pay any back taxes. Innocent spouse relief requires you to submit a joint tax return with the current tax owed, along with other forms that will request relief for the taxpayer who is not responsible for the tax understatement.

Innocent spouse relief is a good option for taxpayers who have filed taxes jointly as a married couple without the knowledge that some of the information on those forms were improperly filed. Even if you are divorced, you will still need to pay any back taxes you and your ex-spouse owe on joint taxes unless you request innocent spouse relief.

Penalty Abatement

Penalty abatement is a way to reduce the amount of taxes owed to the IRS. Tax debt generally generates penalties to the taxpayer for having late payments or for underreporting income. With penalty abatement, these penalties are assessed and then removed from the overall debt owed. This is a good strategy for Failure to File and Failure to pay fines.

Offer in Compromise

An Offer in Compromise is another strategy that allows the taxpayer to settle their tax debt for less than the debt owed to the IRS. This is the best way to have a fresh start with the IRS. For this strategy, you and your tax consultant will negotiate for a settlement of your owed taxes that won't cause undue financial stress. OIC applications will give the IRS information about your ability to pay, your income, your expenses, and any equity you possess.

Release of IRS Wage Garnishment

Finally, you can request the IRS to release any wage garnishment on your income and place your account on collection hold while your tax situation is being analyzed. A wage garnishment is a forceful payment for the IRS; when your wages are garnished, the IRS is taking money directly out of your income to repay your tax debt. However, the garnishment of your wages can be very extreme and can make it difficult to meet your living expenses.

By applying for IRS Wage Garnishment Release, you can have the time to work with a tax consultant to find a strategy that will work for your financial needs. This is typically a good option for taxpayers who are overwhelmed by wage garnishment and need time to file additional forms to the IRS for other tax resolution solutions.

Is It Easy to Work With the IRS?

Many taxpayers have a healthy fear of the IRS, but it's actually much easier than you think to work with the IRS to pay back taxes you owe on your account. The key to working with the IRS is finding a trustworthy tax consultant who will help you explore all of your repayment options.

Working with the IRS means you will need to file the appropriate forms by certain deadlines, gather all of your income and expense information, and be honest about your financial situation. Overall, working with the IRS is very easy.

Why Is the IRS Contacting You?

Most people only think about taxes during tax season, but the fact of the matter is that staying on top of your taxes is a year-round project. When the IRS finds discrepancies in your tax forms, such as not filing taxes on time, not reporting enough income, or taking deductions or credits that you do not qualify for, then the IRS will levy penalties on you and inform you about taxes you owe. When this happens, you will need the guidance of a tax expert to help you find an IRS tax resolution that will work for your financial situation - without putting you further in debt or financial distress.

With something like wage garnishments hanging in the balance, owing the IRS money can be a huge deal and a difficult financial burden to bear. However, IRS tax resolution is actually easier than many people believe. When you work with seasoned tax experts, you can resolve your tax debt easily.


There are several tax resolution strategies you can use. From the most common installment plan to more complicated settlements like Offer in Compromise, there is certainly a repayment resolution that will meet your needs. Additionally, there are other strategies you can use to make paying the IRS back more comfortable, such as the release of wage garnishment or penalty abatement. Please contact Tax Alliance, LLC in Santa Ana, CA to learn more about IRS tax resolution.

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Our Money Back Guarantee!

If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked!

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