Tax Defense Network wraps up its 12 Weeks of Resolutions with a brief review of tax resolutions.

Tax Defense Network’s mission is to help taxpayers in debt to the Internal Revenue Service. To do so, it arranges tax resolution cases using the IRS’ repayment plans.

“There are many different ways to resolve tax debt,” says Scott O’Connor of Tax Defense Network’s Business Development. “The IRS would love for people to pay the whole thing off in one lump sum, but most of the time, that isn’t possible.”

The Streamlined Installment Agreement is the simplest of the IRS’ repayment plans. The entire debt amount is paid in monthly installments over time, no longer than 72 months. Taxpayers do not have to share financial information with the IRS and can keep their financial affairs private.

Tax Debt Reduction is found through a Partial Payment Installment Plan or an Offer in Compromise. In a Partial Payment Installment Plan, taxpayers pay a monthly amount based on their financial capability. They make payments until the statute of limitations on the debt runs out, even though the debt has not been paid in full.

In an Offer in Compromise, the taxpayer and the IRS agree to settle the debt for less than what is owed, if that amount is the most the IRS can reasonably expect from the taxpayer. The IRS’ expectations of what a taxpayer can afford to pay are high, and the Offer in Compromise is difficult to qualify for.

If a taxpayer can demonstrate that making payments toward their debt would throw them into financial crisis, they may qualify for Currently Not Collectible [CNC] status. Under CNC, the taxpayer is not required to make any payment, and collections actions stop. The IRS closely examines a taxpayer’s financial situation before granting Currently Not Collectible status.

The IRS grants Innocent Spouse Relief on occasions when it would be unfair to hold a taxpayer responsible for the tax debt that resulted from a joint return they filed with their spouse. The innocent party must show that they did not know nor had reason to know about the factors that led to the tax debt. The IRS will hold the guilty spouse entirely responsible for the debt.

“Everyone’s situation is unique, and the IRS has a bunch of different payment plans to accommodate different needs and circumstances,” says Scott. “If you’re overwhelmed by the whole process, it is a good idea to seek help from a tax professional, like those at Tax Defense Network. They will know what tax resolution is best for your particular situation.”

Tax Defense Network is a national tax resolution company with an A+ rating from the Better Business Bureau. Its team of licensed tax professionals, enrolled agents, and CPAs has worked with over 90,000 clients to resolve over $120 million in tax debt.