There are many methods to settling back taxes with your State and the IRS. Both have created tax settlement possibilities for every type of financial situation. There are thousands of people that cannot pay taxes their taxes in full, by simply writing the IRS or state a check. The worst thing you can possibly do is ignore the problem. If no agreement is made with the IRS or your state, penalties and interest grow very quickly. Below are the tax settlement methods available under the IRS. The specialists at Community Tax Helpers are experts in settling tax issues with both the IRS and all the individual state governments in America.

When you owe back taxes, it is always best to use a tax professional. A tax relief professional's job is to analyze your unique financial situation and help you make the right choices regarding for specific tax problem. Invariably, a tax professional saves individuals time and money by using their services over handling the situation on their own. The professionals at Community Tax Helpers have extensive experience with the solutions mentioned below.

Paying Tax Bill in Full: This is the most obvious settlement of tax problems and the most desired by the government. If taxes are paid in full all IRS actions will stop. Sometimes in order to come up with the money it may take a little thinking outside the box. One common method for getting the money to pay taxes back is to borrow money from your home through a home equity loan, which will settle your back taxes and allow you a low monthly payment at the rate of your mortgage to pay off the taxes. Some also consider borrowing from family and friends or selling some assets. It is advisable to consult a tax professional before settling a tax debt in full.

Offer in Compromise: An offer in compromise is a method used for tax settlement where the amount paid for debts owed is less than the original amount owed. This program is a hardship program, and few people who apply will qualify. This program is for those who can't pay back taxes in full and owe back taxes. Consult a tax professional for the standards used in assessing eligibility for the program.

Installment Agreement: An installment agreement is the most common form of tax settlement. Once an installment agreement is accepted, the IRS will consider the client to be in good standing as long as you make your minimum payments on time each month. If you owe back taxes an installment agreement can be the answer to containing a tax problem, and ultimately putting an end to it.

Partial Payment Installment Agreement: This method is available for people that are unable make the payments required with an installment agreement. The partial payment option allows for smaller monthly payments that may add up to less than the total amount of tax owed. The situation may be reviewed to see if the IRS can increase payments or terminate the agreement. This is also a hardship program, and if you can't pay back taxes in full you may qualify.

Declared Uncollectible: The IRS can determine that you are currently uncollectible, and once this happens they will halt all collection actions against you and will review your financial situation after a given period of time. People may end up paying no taxes at all if the situation doesn’t change.

Statute of Limitations Expires: The IRS typically has 10 years to collect taxes owed from the date of the original assessment. If 10 years passes and the IRS has not collected, they can no longer collect these tax amounts. This 10 year "clock" can be reset under certain circumstances such as an audit of a tax return, or in the case of a late filed tax return.

IRS Penalty Abatement: If you owe back taxes there are usually large amount of IRS penalties and interest on top of the tax amount owed. These penalties may grow quickly and can make up for the majority of the tax amount owed. The IRS allows individuals to abate part of or all of their penalties accrued on their tax debt if they can show a legitimate reason for not being able to pay they are assessed too much tax.

Financial Hardship: Taxpayers may not be able to pay their taxes because they have no cash, assets, or any ability to pay. They may be constantly harassed by the IRS regardless of their ability to pay. Individuals do not have to keep taking this constant harassment from the IRS. The tax professionals at Community tax helpers will use the method appropriate to your case to end your tax problems.