How to Reduce Your IRS Tax Debt IRS Express

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Learn the different methods to reduce or eliminate your IRS tax debt

There are a few different ways you can lower the amount you owe to the IRS. In some cases you can eliminate it all together. The first step to reduce or eliminate your tax problem is to make sure you don’t have any missing returns. If you have unfiled returns, the IRS may file them for you which will most likely be to your disadvantage. In most cases, just properly preparing your old tax returns can reduce you tax debt by a considerable amount or even eliminate it all together.

After you have filed your tax returns, you can start to further reduce your tax debt. By far the most common way to lowering your tax debt after filing all of your returns is using the Offer in Compromise. The Offer in Compromise is used in the vast majority of cases to lower your tax debt. The Offer in Compromise can lower your tax debt up to 95%. To find out more, see the movie about the Offer in Compromise.

Another method that you may have heard of is interest and penalty abatement. To win an abatement with the IRS is very rare and requires sophisticated legal representation.

Hardship is also an option. Appling for a hardship can be used to delay the collection process for two years or more. A hardship status, also known currently non collectable status is nothing more than an installment arrangement whereby you offer the IRS a $0 monthly payment.


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