Offer in Compromise: This is a partial settlement of your total tax liability. To qualify for this tax resolution option, there must be an extraordinary reason the IRS should not collect the total amount of tax due. Doubt as to Collectability and Effective Tax Administration are the most common approaches and are based upon income, expenses and assets
Installment Agreement: A payment plan with the IRS to make regular and monthly payments to pay off the taxes owed.
IRS Collections: The IRS has far greater powers than any other bill collector. The IRS has the power to put in place a wage garnishment, levy bank accounts, and other property.
Bankruptcy: Under some circumstances, you may have your tax liability discharged in bankruptcy or paid through a bankruptcy plan.
Innocent Spouse Relief: Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. In filing jointly, both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise as a result of the joint return even if they later divorce. Joint and several liability means that each taxpayer is legally responsible for the entire liability. Thus, both spouses are generally held responsible for all the tax due even if one spouse earned all the income or claimed improper deductions or credits. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due. In some cases, however, a spouse can get relief from joint and several liability.
Injured Spouse: If you file a joint return and all or part of your refund is applied against your spouses’ past-due federal tax, state income tax, child or spousal support or federal nontax debt, such as a student loan, you may be entitled to injured spouse relief.
Statute of Limitations Review: There is a ten year statute of limitations from the IRS assessment date. The statute period does not begin until the taxpayer has filed a tax return. A substitute for return (SFR) prepared by the IRS does not count as a filed return. If the statute clock has started and the IRS has not collected within the ten year period (assuming no interruption to the statute period), the tax is no longer collectible and the IRS must release any lien or levy against the taxpayer. A careful review and analysis of your situation and IRS records will allow for a determination on whether the statute has expired.
Penalty Abatement: A reasonable cause statement made to reduce or eliminate tax penalties and interest on your underlying liability.
Currently Non-Collectible Status: Under some circumstances, the IRS will agree to forgo collection if you cannot pay the tax. While this will place a hold on collection activity, it is a temporary hold. The IRS will re-visit ability to pay to see if the economic condition of the taxpayer has improved.
IRS Tax Appeal: If you disagree with the decision by the IRS, you may request an appeal of your case.