Every day, Tax Defense Network assists clients with tax problems and helps them find tax debt resolution via the Internal Revenue Service’s myriad of debt repayment programs. Among these programs are payment agreements to pay back the entire tax debt, as well as agreements to pay back a reduced amount of debt, if the taxpayer qualifies.

“The IRS wants to get back as much as it can toward a person’s tax debt,” explains Scott O’Connor of Business Development at Tax Defense Network. “After all, whether or not we think it is fair, it is the IRS’s job to collect taxes. But even the IRS understands that sometimes paying back the entire debt is just not possible. That is why there are tax debt reduction payment options.”

Two types of resolutions provide partial debt reduction: The Offer in Compromise and the Partial Payment Installment Agreement.

With an Offer in Compromise, the IRS agrees to settle the debt with the taxpayer for less than what is owed. This can mean substantial tax debt reduction. Very attractive to those in tax debt, Offers in Compromise are difficult to qualify for. The IRS uses strict qualifying factors when considering Offers in Compromise.

“Many clients come to us hoping for an Offer in Compromise,” says Scott at Tax Defense Network, “but it’s not always possible. The IRS rejects most of the Offers in Compromise it receives and, unlike others in the tax resolution industry, Tax Defense Network will not submit an Offer in Compromise it knows the IRS will reject.”

In a Partial Payment Installment Plan, the taxpayer makes affordable monthly payments based on their ability to pay, which the IRS determines by a thorough analysis of their financial situation. Payments are made until the Collections Statute Expiration date, at which point the IRS can no longer legally collect on the debt, even though the entire debt has not been paid in full.

Both resolutions require full financial disclosure. “Before it grants a tax debt reduction agreement, the IRS looks very closely at a taxpayer’s finances,” Scott explains further. “They’ll examine income, expenses, and assets, as well as equity in assets. It is Tax Defense Network’s job to present our clients’ financial situation in such a way that gets them the most advantageous resolution.”

Tax Defense Network is a national tax debt resolution company located in Jacksonville, Florida, that helps taxpayers across the country with their tax problems. A+ rated by the Better Business Bureau, their tax team of licensed tax professionals, CPAs and enrolled agents has helped to resolve over $120 million in tax debt.