How Do I Qualify for Relief on Past-Due Taxes?

A desk with a pen, calculator, notebook, and a piece of paper labeled "tax debt relief"

Were you late on your taxes and are now facing a sizable debt due to back taxes?  While past-due taxes place a significant financial burden on filers, there are options.

Relief is available; you just have to know where to look.  Use available resources to your advantage when trying to pay past-due taxes.

Learn how you can qualify for IRS tax relief on back taxes to lower the financial burden facing you and your family.

Key Insights We Will Discuss:

  1. Offer in Compromise for tax relief
  2. How to qualify for an Offer in Compromise
  3. IRS Fresh Start Program Options for paying tax debt

What is an Offer in Compromise (OIC)?

An Offer in Compromise is a program through the IRS that gives taxpayers some relief from past-due taxes.  Instead of paying the entire amount owed, the taxpayer is able to cut their debt significantly.  This provides relief for those facing a financial burden from past-due taxes.

By lowering the total amount owed for past-due taxes, you can gain significant relief from your tax burden.  This is a popular option for that reason.  However, not everyone qualifies.

How to Qualify for an Offer in Compromise?

Taxpayers qualify for relief this way if their financial situation would make it a significant burden to pay their past-due taxes.  To make this determination, the IRS looks at several factors, including:

  • Current ability to pay
  • Income
  • Expenses
  • Asset equity

The complexity of the IRS Offer in Compromise program makes it incredibly important that you work with a tax attorney when filing to have the best chance of qualifying.

IRS Fresh Start Program options

More than a decade ago, the IRS created the Fresh Start Program to help more Americans escape the burden of past-due taxes.  By instituting more programs based around settling debt, the IRS was able to help taxpayers avoid liens and financial hardships.  The tools available through this program are wide-ranging and involve several options for those who owe past-due taxes.

One option similar to the Offer in Compromise, is a payment plan referred to as Partial Payment.  This allows taxpayers another option to settle their debt at a lower amount than what they currently owe the IRS.  With this program, taxpayers are still responsible for their upcoming tax liability and still have to meet qualifications to be able to receive assistance.  So, again, it is best to consult with an attorney about this option; he or she can tell you if you even qualify.

Contact a Tax Attorney

If you owe the IRS significant past-due taxes and are looking for relief, call Ayar Law at 800.571.7175 to receive free, no-obligation tax advice from a tax attorney.

Executive Summary:

  • past-due taxes are a significant financial burden
  • Relief options are available
  • An Offer in Compromise can provide financial relief if you meet certain qualifications
  • Fresh Start offers options to lower tax burden and escape the hardship of back-taxes

Venar Ayar, Esq.

Venar Ayar, Esq.

Attorney-at-Law, Master of Laws in Taxation
Principal and founder, Ayar Law

Venar is an award-winning tax attorney ranked as a Top Lawyer in the field of Tax Law. Mr. Ayar has a Master of Laws in Taxation – the highest degree available in tax, held by only a small number of the country’s attorneys.