What should I do if I can't afford to pay my tax debt?

If an individual finds themselves unable to pay their tax debt, there are several options that they can consider. It is important to first understand that the Internal Revenue Service, or IRS, generally offers various programs intended to help taxpayers in financial hardship. One option is to request an installment agreement, which allows individuals to pay their tax debt over time in manageable monthly installments. This can help ease the financial burden while still addressing the debt owed. Another possibility is to apply for an offer in compromise. This program allows taxpayers to settle their tax debt for less than the full amount owed. However, the IRS considers several factors, including income, expenses, and asset equity, to determine eligibility. It is crucial to have a clear understanding of one's financial situation before opting for this route. Additionally, taxpayers may consider filing for currently not collectible status. This designation indicates to the IRS that the taxpayer is suffering significant financial hardship and cannot pay any of their tax debt at this time. It is important to note that while this status may relieve immediate payment obligations, the tax debt does not disappear and may accrue interest over time. It could also be beneficial for individuals to seek assistance from a tax professional or a tax resolution specialist. These experts can provide guidance tailored to specific circumstances and help navigate the complexities of tax debt relief. For further information regarding these options, visiting the relevant sections on The Tax Resolvers website may provide additional insights and resources.