IRS debt relief becomes extremely important when a taxpayer discovers that they cannot settle their tax debt in a lump sum. Living under the weight of a tax debt is a very stressful experience for both the taxpayer and their family. Usually, all normal activities have to be reduced and sometimes covering the expenses of basic necessities becomes a problem. The IRS debt relief program has been available to taxpayers for many years. Its purpose is to allow taxpayers to settle their tax debts for an amount less than what they actually owe. To a large extent, the financial situation of the taxpayer influences the specific debt relief strategy that is adopted. In fact, after a negotiation with the IRS has been completed, the taxpayer may be given the option of a monthly or quarterly installment payment plan.

However, the installment payment option is more expensive than the lump sum payment method, since interest is charged with the earlier resolution. But when it’s not possible to pay off a large amount of outstanding tax debt at one time, the installment payment plan is the only viable option. It is extremely difficult for most taxpayers in the US to navigate the IRS debt settlement guidelines. The average taxpayer is not familiar with the intricacies of the tax laws; therefore, seeking the assistance of a qualified tax expert is the way forward. Underestimating tax legality is a dangerous thing to do and could put the taxpayer in further jeopardy.

If delinquent taxpayers have received notices from the IRS, they should take advantage of IRS debt relief programs as soon as possible. In many situations, tax relief is only offered for a short period of time, usually 2-4 months. The exact time required to reach the appropriate tax relief vehicle depends largely on the complexity of the specific tax problem. An IRS lien is a very difficult thing to handle; therefore, it is better to avoid it at all costs. If it is too late, a property seizure, bank lien or tax lien can be reversed, but the assistance of a highly competent tax attorney is required.

With the recession prevailing in the US and world economies, more and more Americans are defaulting on paying their IRS taxes. Therefore, people are advised to seek debt relief from the IRS as soon as possible, rather than waste time or procrastinate unnecessarily. There is a specific IRS tax debt relief program known as an OIC (Offer in Compromise). Under federal law, the IRS has the power to reach a negotiated agreement with the taxpayer that has the burden so that the debt is settled for less than the amount actually owed.