Luckily, it is possible to reduce your tax debt, though it will take some time and effort. Here are three good options:
Penalty Abatement There are special circumstances that will eliminate the accrued penalties from your IRS tax debt. For example, you would qualify for having the penalties removed if you were late making payments on your tax debt because you were in the hospital. If you think you have a circumstance that would allow the penalties to be removed from your IRS tax debt you should contact a professional and see if that is a possibility. You could save hundreds of dollars if you qualify.
Offer in Compromise Another way to have your IRS tax debt greatly reduced would be to settle it with an IRS Offer in Compromise. If you qualify, your debt could be cut in half or more – saving you hundreds or even thousands of dollars. But it is no easy task to convince the IRS that you deserve to have your tax debt amount lowered. You have to prove that you simply do not have the funds to pay in full.
Professional Help If you want to have your tax debt reduced, you may need to seek professional help. The IRS is pretty stingy. They don’t want to lose a dime. But if you a hire a professional that knows the ins and outs of the IRS’s processes, you may stand a better chance at success.