Staying on top of paying taxes is not always a simple matter, especially for individuals who do not have their projected income taxes deducted from their paycheck automatically. In some cases, you may receive a bill from the IRS, at which point you should consider your next steps very carefully. If you can pay the owed amount and do not dispute the amount that the IRS claims you owe, it is simplest to pay it in full. However, many people cannot write a single check and pay off a tax bill. Fortunately, there are further options.
If you are unable to pay in full, you can apply for a payment plan with the IRS. However, in many cases, especially if the amount owed is fairly significant, it is wise to consider offering the IRS a compromise payment for a portion of the amount they claim you owe.
In these circumstances, it can be exceptionally useful to enlist the guidance of an attorney who has experience dealing with the IRS. Your offer may be accepted if you meet one or more of a number of standards. In order for your offer to be considered, the IRS must recognize that the amount they claim you owe may be inaccurate, or you must demonstrate that you do not have the resources to pay the debt, or otherwise demonstrate that paying the debt would place an undue economic hardship on you.
This is very tricky territory to navigate, so it is wise to use the guidance of an experienced attorney. With proper legal counsel, your rights remain secure as you fight to get out from under your tax debt and reclaim your life.
Source: Internal Revenue Service, "The IRS Collection Process," accessed June 23, 2017