If you’re receiving IRS letters, notices, or wage-garnishment threats, you’re probably wondering: Can I make a deal with the IRS?
The answer is yes—in many cases you can. The IRS prefers to work with taxpayers who show good-faith intent rather than chase uncollectible debt.
Here are the main ways to reach a fair deal.
Option 1: Installment Agreements
An Installment Agreement lets you pay your balance over time.
Interest and some penalties continue, but it stops most collection actions.
It works best if you have steady income and can make monthly payments.
Option 2: Offer in Compromise
If paying in full would cause financial hardship, you may qualify for an Offer in Compromise (OIC)—a legal settlement that allows you to pay less than you owe.
The IRS calculates your Reasonable Collection Potential (income, expenses, and assets). If your ability to pay is lower than your total debt, they may accept a reduced amount.
Option 3: Currently Not Collectible Status
If you can’t afford any payment at all, the IRS can mark your account Currently Not Collectible (CNC).
This pauses active collection until your finances improve. The debt remains, but you gain breathing room and protection from new levies.
Option 4: Penalty Relief and Partial Plans
Even without an OIC, you can often remove or reduce penalties through First-Time Abatement or Reasonable-Cause requests.
A Partial Payment Installment Agreement lets you pay less each month based on what you can afford.
Why Work With a Tax Relief Professional
The IRS process is mathematical and procedural—not emotional.
A professional will:
- Evaluate your household budget using IRS standards
- Identify programs you truly qualify for
- Handle paperwork and negotiations correctly the first time
Need help making a deal with the IRS?
Contact Tax Relief Systems LLC for a free, confidential case review.
Talk to Tax Relief Systems LLC for a free consultation at (877) 807-3133 or info@taxreliefsystemsllc.com
Article written by Richard Lococo.
