How Tax Attorneys Resolve IRS Debt

Every IRS resolution starts with the same step: pulling your transcripts. The transcripts tell me what the IRS thinks you owe, when it was assessed, what penalties have been added, and how much time is left on the collection statute. Without transcripts, you're guessing.

The Resolution Menu

Installment Agreement. Monthly payments over time. The simplest option if you can afford it. For debts under $50,000, streamlined agreements require no financial disclosure.

Offer in Compromise. Settle for less than you owe. The IRS calculates your Reasonable Collection Potential and accepts offers at or above that number. Read more: How OICs actually work.

Currently Not Collectible. The IRS shelves your account because you can't pay. No payments, no enforcement. The 10-year collection statute keeps running, and the debt may expire.

Penalty Abatement. Remove penalties — often 25% or more of the total balance. First-time abatement and reasonable cause are the two primary paths.

Bankruptcy Discharge. Older income tax debt may be dischargeable in Chapter 7 bankruptcy if three timing rules are met. Use the free calculator to check your dates.

The Strategy

A good tax attorney doesn't just pick one option. The strategy often involves combining approaches: file missing returns to reduce the balance, request penalty abatement to knock off another chunk, then negotiate an installment agreement or OIC on the remaining amount. Sometimes the best strategy is to do nothing and let the collection statute expire.

The right answer depends on your specific numbers, your specific dates, and your specific financial situation. Let me look at yours.

32 years of IRS experience. Free consultation. I will tell you exactly where you stand and what your options are.