Alternatives to an Offer in Compromise

What are some other options for retiring delinquent tax debt if one does not qualify for an Offer in Compromise?  The first option is an Installment Agreement.  Not everyone qualifies for this, but if the taxpayer does an acceptable monthly payment amount can usually be negotiated with the Revenue

 

Officer.  The goal is to determine an amount that will pay off the debt over a reasonable period of time without significantly altering the taxpayer’s lifestyle.   Depending on how the taxpayer’s income and expenses are structured will determine how low the monthly payments can be made. Also, many times an Installment Agreement will be accepted that will not pay the debt in full during the life of the Statute of Limitations to collect the tax.  In determining the monthly payment, one must remember that as large an amount as one can afford should be paid in order to lessen the total interest that will be paid over time. One can make the monthly payments on any day of the month up to the 28^th of the month.  Finally, when the underlying tax is paid, one can also negotiate to have the penalties abated.