When taxpayers find themselves in so much debt that there is no hope of paying it without becoming destitute, there are several options they can pursue. Some people set up an IRS payment plan to take care of the debt slowly over time rather than paying it all in one lump sum. Other people who believe the debt is too large to ever reasonably be able to pay it, or who feel that their liability is unwarranted, attempt to arrange an Offer in Compromise to settle their debt for less than what they owe. In either case it is important to have the assistance of tax relief specialists who can help navigate the Internal Revenue Service system.

When a taxpayer arranges a traditional IRS payment plan they are simply arranging to pay the entire amount that they owe in a series of smaller amounts rather than paying it in one lump sum. But when a taxpayer arranges an Offer in Compromise they can choose to pay it off in a lump sum, a short term periodic payment offer, or a deferred periodic payment offer. They must also submit a $150 application fee and initial payment along with the Form 656, Offer in Compromise. If a taxpayer does not take any action to settle their debt, though, they might find themselves facing IRS wage garnishment or some other very undesirable action taken against them.

The role of the tax relief specialists is very important when setting up an IRS payment plan such as the Short Term Periodic Payment Offer in Compromise. This payment plan requires that the taxpayer pays their debt within 24 months of the date that the IRS received the offer. Having assistance is also important when setting up a Deferred Periodic Payment Offer in Compromise, which is payable in installments over the remaining statutory period for collecting the tax. Without professional assistance from experienced tax relief specialists, the IRS is more likely to deny the offer request, negotiate a different offer amount and terms, or determine that the proposed offer amount is too low or the payment terms are too protracted.

Tax relief specialists understand the paperwork involved when setting up an IRS payment plan and they know how to work with IRS agents to get the best possible outcome for the taxpayer. It is important to get help like this when facing massive debt to the IRS.