Getting a Clean Slate from Your Tax Debt in 2023

Getting a Clean Slate from Your Tax Debt in 2023

• Jan 29, 2023

The New Year is a time for new beginnings. But a new beginning can feel impossible when you have a tax debt hanging over your head—especially with a new tax season looming on the horizon. How can you truly get a clean slate with that kind of weight on your shoulders? The good news is, there is a way that you can move forward and get that new beginning you deserve in 2023. Here’s how you can tackle that tax debt and start focusing on other resolutions and ways to improve your life.

What Options Are Available to You?

Many people don’t realize that the IRS actually offers many ways to settle your tax debt or make it manageable once again. The exact programs you qualify for will vary depending on the size of your debt and your exact financial circumstances. Here’s what you need to know about the various tax relief programs available:

• Short-term payment plans – For some people, a little extra time and breathing room is all they need to get their tax debt under control again. If this is the case for you, a short-term payment plan may be exactly what you need. This plan offers you an additional six months (180 days) to pay off your debt, and there is no cost to apply or set it up.
• Long-term payment plans – If six extra months isn’t enough to repay your debt, you can apply for a long-term payment plan instead. These plans can provide several years to settle the debt, with regular monthly installments established to help manage that debt. The exact length of your plan and the size of your monthly installments will vary but are based on your monthly income and expenses, and are intended to be manageable payments that will help you eventually settle your debt without having to make a large lump-sum payment.
• Offer in compromise – An offer in compromise (OIC) is a very difficult type of payment plan to receive, but certainly not unheard of. An OIC allows you to settle your tax debt for less than what you owe by providing the IRS with an offer of what you believe to be a fair settlement amount. The IRS will carefully review the offer that you provide, along with detailed information regarding your finances. If they believe the amount to be the most that they can reasonably expect to collect on your tax debt, then your offer will be accepted. While settling your tax debt for less than what you owe will no doubt sound appealing, it requires you to pay your offer amount in full, and not in installments. This can often be very difficult for people to achieve without parting with a significant amount of personal property.

These here payment plans form the bulk of tax relief options that the IRS provides. There are a few other debt relief options available based on very specific circumstances, but most taxpayers will need to apply for one of the above options.

How Do You Get Started?

Now that you know what your settlement options are, you might be wondering where to even begin. Your best option is to reach out to the IRS Advocates for guidance on this process. We’ve handled countless tax settlement applications and can help the process to move along a lot more smoothly, while also increasing the likelihood that your application will be accepted.

We always begin with a free consultation, in which you can discuss the available options with a CPA. We’ll help you review the various settlement plans and determine what the right resolutions option is for you. Then, we’ll do the heavy lifting to put a stop to collection proceedings, collect the necessary documentation, and ensure you have all the necessary information in order for a successful application.

Finally, we’ll negotiate on your behalf, prepare your final resolution, and submit it to the IRS for approval. By the time we’ve finished, you’ll have freedom from your tax debt and a clean slate on which to begin building your future.

If you’re struggling under the burden of tax debt and can’t see a way forward, contact the IRS Advocates today. We’ll go to work for you and help you make 2023 the year that you find freedom from tax debt. Call now to schedule your free initial consultation with one of our qualified and experienced CPAs.