This is a guest post and does not necessarily reflect the views of Jason Levoy. 

Taxes are already complicated enough even if you’re paying on time, but they can prove to be more challenging if you get behind. Things can go real messy fast, and you may find yourself facing audits from the previous years that you owe the Internal Revenue Service, which is called “back taxes.” If you have a large amount to pay, you may begin wondering whether there’s a tax relief out there.

Know that you have various options if you want to get relief. There’s also a guide on how you can file those taxes and the number of years you’re allowed to file them. It’s best if you can visit IRS Tax Relief Network.com for a guide on how you can settle your debt even if you haven’t filed for a very long time. Other options available are the following:

1. Payment Plans through IRS

If you need time to pay your debts, you may want to talk to the IRS and set up a payment plan with them. This can give you enough time to pay the bills that may already be overdue. You may also find fees and accrued interests that can pile up over a period of time, so it’s best if you can pay in a lump sum.

You may qualify for either the long-term or short-term payment plans. Short-term may mean that you owe at least $100,000 in the combined amount of tax, interests, and penalties. You can apply for this over the phone or online, and you’ll be given 120 days to settle the amount. The balance can be paid through money orders, checks, credit cards, debit cards, or withdrawals from your checking account. Get more info about writing money orders to the IRS at this link here.

A long-term payment plan needs over $50,000 in owed taxes, interests, and penalties combined. You’ll be given 120 days or more, depending on your current financial standing. The payment may be through automatic withdrawals, and it can cost $107 to apply in person, by mail, or by phone.

Low-income applicants are usually allowed to get the set-up fees waived in automatic withdrawals. If they prefer another payment method, the fee may be reimbursed or reduced to just about $43 in particular circumstances. Here are other things that you need to know about this payment plan:

• The plan will still accrue interests, and it will have late payment fees. This does not mean that you can waive those extra, and the amount can continue to pile up until you pay 100% of your bill.
• If you currently owe over $25,000, you have the option to make payments through automatic withdrawals.
• Making payments through your current debit or credit card may mean that you’ll have to shoulder the processing fee. This can be up to $4 on each payment, and the credit card charges may be up to 2%.
• For low-income applicants, the gross income should fall below the federal poverty level of 250%. See if you qualify with this through IRS Form 13844.

2. Offers in Compromise

Some people get relief through OIC. This means that you can settle the back taxes for less than what you’ve originally owed. According to the rules and regulations set by the IRS, this is only applicable for people who absolutely can’t pay or those who are facing financial ruin or hardship. Know that this will only be an option for those deeply in debt, and the IRS rarely settles on an offer in compromise. In fact, less than half the requests are being accepted, and you need to explore alternative options before deciding on an OIC.

Some factors that will determine your eligibility in offers in compromise will include your income and expenses, ability to pay, and the current assets that you have. For the application, you need to fill out the form 656-B, and there’s a non-refundable $205 fee.

• An initial payment will be required, and this is non-refundable as well
• You’re required to have current tax returns. If you haven’t filed in a long while, your application may get rejected
• Tax liens can be kept in place until the IRS accepts your offer, and your part of the deal is fulfilled
• You’re not qualified if you’re undergoing a bankruptcy process
• Hiring a tax professional may be an option but is not a requirement
• Once the required paperwork and application filing has been completed, all collection activities will be suspended

Accepted Offer

Once the IRS accepts your application for an offer in compromise, the initial payment should be at least 20% of the amount. This is applicable if you’re going to complete the payment in just five or fewer installments.

It’s worth noting that information written on the OIC can be available to the public. The public inspection files may contain the state, ZIP code, taxpayer’s name, city, amount payable, and offer terms.

Any liens filed against you will not be removed until your end of the deal is fulfilled. There’s also a chance to appeal within 30 days if the initial offer is rejected. Read more info about the OIC on this site: https://www.investopedia.com/terms/o/offer-in-compromise.asp/.

3. Status of Currently Not Collectible

If you can’t pay your living expenses and taxes anymore, you can always ask the IRS to put you in a Currently Not Collectible status. There’s a request for the collection to be delayed, and you may need to completely fill out a Collection Information Statement to prove that you’re in a bad financial situation.

This situation is considered temporary, and you may be subjected to an annual income review by the IRS to see if your situation has improved. The debts will not go away even if you’re not in a Currently Not Collectible Status.

4. Getting Help from a Tax Relief Company

Companies specializing in taxes are for people who are currently in distress. This is a situation that you can take advantage of when the IRS doesn’t give you an opportunity to file for an offer in compromise or you’re unsure of what to do with your penalties, interests, and tax debts. More info about what happens if you don’t pay your taxes is on this page. The company will help you set up payment plans or reassess your qualifications for an offer in compromise. Just research about them first and get the legitimate ones.