One of the stressful situations that a person faces in the tax season is when a person can understand that they can’t pay the full taxes to the IRS in the stipulated time. An individual can feel the stress, and due to the lack of awareness about the tax process, one can feel that the enforcement will come knocking on their doors.

For example, we have recently witnessed the curse of COVID-19, and that showed us how people have lost their jobs and livelihoods, which has become troublesome for individuals. In this blog, we will recommend some of the methods by which an IRS debt attorney can advise a person to pay off their tax debt without bringing financial stress into the life of that person.

1.  Installment Agreement

A person who can’t pay their taxes in full can easily opt for the installment option prior to the Collection Statute Expiration Date (CSED), which will help an individual to have relief for not paying the tax in full.

IRS has certain relaxations that allow people to pay their tax debts in easy installments, and they can be broken down into as many as 120 months. A person needs to maintain the agreement terms, and through that, they can save their financial situation.

2. Partial Pay Installment Agreement (PPIA)

A partial payment installment program is an agreement between the IRS and the taxpayer, and there are certain changes in the documents. As in this scheme, the IRS waives off the minimum owed amount if they find that the taxpayers maintain the regularity.

It is quite different from the installment program, and for that, one needs the right track record. For people who previously used to have a better financial record and suddenly face a crunch for certain downfall, this rule is applicable. The IRS continues its checking process by ensuring that the person can pay the full tax again before the collection date.

3.  Offer in Compromise

This payment procedure doesn’t follow the monthly payment plans but ensures a series of payments that a person will pay to cover their tax debt. However, for the option of an offer for compromise, one needs to go through the strict eligibility criteria. For that, one needs to have a reasonable cause that can provide such relaxation.

Here, one can consult with an IRS audit lawyer in Los Angeles or at their preferred location and get all the financial files in one place and narrate the case so that a person gets more flexibility.

The IRS only offers this scheme to those individuals who pay high amounts in taxes and have no other discrepancies to date. It’s for those individuals who can offer reasonable collection potential to the authority to become eligible for this scheme.

4.  Currently Not Collectible (CNC) Status

This option is more critical, and the IRS offers this scheme to those who are seriously in a critical situation and going through financial turmoil. In the economic downturn, people suddenly lose their income source, and for that, one must consider this option when they aren’t able to make any tax payments.

These are some of the ways through which one can legally delay their tax payment process by requesting the IRS to grant special acceptance and then recover from the financial hardship and pay it back.