What does it mean to resolve a tax debt?
To the
IRS, resolving a tax debt means getting the debt under control. That's
also the the taxpayer's goal. Well, not exactly the same. A taxpayer
would like the debt to go away. And that rarely happens. In order to resolve a federal tax debt, there are 2 steps. First The
taxpayer must first be "in compliance." That means that the taxpayer
has filed all of the returns that are required so that the IRS knows how
much the taxpayer's owes. Second When
it's not possible for the taxpayer to pay their debt in full within
about 180 days, the IRS will seek to get the debt under control. That
means setting up a payment plan or determining that the taxpayer is
currently unable to make payments. |