Tax Relief Options to Manage Your 2024 Debt

Many Americans struggle with tax debt each year. If you're dealing with unpaid taxes from 2024, several tax relief options may be available to help you manage and resolve your debt with the IRS. These options can include installment agreements, offers in compromise (OIC), and penalty abatement.

An installment agreement allows you to pay your tax debt over time through monthly payments. This can provide much-needed breathing room and prevent further collection actions. An Offer in Compromise (OIC) lets you settle your tax debt for a lower amount than what you originally owed. The IRS considers factors like your ability to pay, income, expenses, and asset equity when evaluating an OIC.

Penalty abatement may be an option if you can demonstrate reasonable cause for failing to file or pay on time. Reasonable cause could include illness, natural disaster, or other extenuating circumstances. It's important to gather all relevant documentation and consult with a tax professional to determine the best course of action for your specific situation. Seeking professional help can ensure you explore all available options and navigate the complexities of tax relief effectively.