Home Blog IRS Debt Negotiation: Options, Qualification, Tips, Legal Help

IRS Debt Negotiation: Options, Qualification, Tips, Legal Help

This page explains IRS debt negotiation, how it works, key tips, and how a lawyer from ContractsCounsel can help you navigate the process.

Jump to Section

What is IRS Debt Negotiation?

If you owe the IRS debts you can’t afford, you might not realize that you could be able to negotiate them. IRS negotiation involves formulating a payment plan that enables you to settle your tax debts in a more affordable way. This can include lowering the total amount that’s owing or organizing a longer payment plan.

Read the rest of this article to learn about IRS debt negotiation in more detail, how it works, and when you should consult with a lawyer for assistance with your debts.

What are Your Options for IRS Debt Negotiation?

Usually, there are four options that can provide relief for your IRS debt. These are:

  • Offer in Compromise (OIC). This lets you settle your liability for less than the amount owing. In order to use this option, the IRS will take your income and assets into consideration to decide on how much you’ll be able to pay.
  • Installment Agreement. If you’re struggling to make payments on your debt, you might be able to start a monthly payment plan that settles the debt over time in a more affordable way.
  • Currently Not Collectible (CNC). If your financial hardships are intense and you can’t pay anything toward the debt right now, you might be able to ask the IRS to delay the debt collection temporarily until your situation improves.
  • Penalty Abatement. This is when you ask to remove penalties associated with the debt. While it doesn’t remove the amount of debt you owe, it can reduce your costs.

Do You Qualify for IRS Debt Negotiation?

Before making an offer to settle your debt with the IRS, you will have to ensure that you qualify for the assistance. Here is a brief rundown of what they will consider for each of the debt negotiation options listed in the previous section.

Offer in Compromise (OIC)

Not every taxpayer will qualify for an OIC. You must meet the following criteria:

  • You’ve filed all your tax returns.
  • You aren’t bankrupt.
  • You have a bill for a minimum of one tax debt included in your offer.

Once you’ve met these criteria, the IRS will agree to an OIC if you meet any of the following:

  • You don’t owe the tax.
  • You can’t pay all the debt you owe.
  • Should you pay the debt, it would cause financial hardship for you.

You also have to fill out an application form, known as Form 656 and pay an accompanying fee. You’ll have to submit Form 433-A for individuals or Form 433-B for businesses, and provide financial information. The IRS will then review your submission and either accept or reject your offer.

Installment Agreements

If you can’t pay the full amount owing on the debt, you can pay monthly via this arrangement. There are short-term plans that last up to six months or longer plans that have additional costs, such as setup fees.

As long as you’ve filed your tax returns, you will likely qualify for an installment agreement. Go to the IRS website to set one up online.

Currently Not Collectible (CNC)

Should you need to temporarily pause your bill payments because you can’t afford basics like food, you can request a CNC status. You will have to contact the IRS and prove that you can’t afford essentials, such as your rent or medical care. They will assess your financial situation before delivering a decision.

Penalty Abatement

This plan won’t decrease the amount you owe the IRS, but it can reduce or write off penalties to help you save money on the overall amount. As long as you have a good tax record for the previous three years, the IRS can waive penalties for one tax period.

If you have a strong reason for not having paid your taxes, such as a death in the family or illness, the IRS will also consider this.

What are Tips for Negotiating Your IRS Debt?

You have the option of working with the IRS to negotiate a debt settlement, but this might not be a negotiation in the traditional sense of making offers and counteroffers. The IRS will take your situation into account so you’ll have to leave the final decision up to them.

If you’re going to negotiate with the IRS for your debt, you need to ensure you do the following that will help your case.

  • Gather all your documents. Make sure you have all the relevant documents you need based on the tax relief you wish to gain. This can include financial statements and other records to show proof of your hardship. Have all your records on hand before you call the IRS.
  • Visit the IRS website. As part of preparing before you contact the IRS, you should visit the IRS website to read up on any advice and download any forms you might need.
  • File Your Taxes. Even if you can’t pay your debt, it’s worth continuing to file your taxes. This keeps you in good standing and helps you to avoid paying extra fees or penalties.

Do You Need Legal Assistance with Negotiating Your IRS Debt?

It’s advisable to work with a tax professional to deal with your IRS debt. You can also benefit from working with a lawyer who can help you find the best solution for your financial situation and hardship.

A tax lawyer can also assist you to avoid severe consequences related to the debt, such as wage garnishment.

Although working with the IRS can feel stressful or overwhelming, working with a qualified legal professional can give you peace of mind that you’re navigating the situation in the best way possible and exploring all your legal options.

Get Help With Your IRS Debt Negotiation

If you’re struggling to make your tax payments, you can work with a qualified lawyer on ContractsCounsel. As one of the largest online legal marketplaces, with over 1,000 vetted lawyers on its platform, ContractsCounsel provides you with skilled lawyers who have experience in assisting clients with their IRS debt. You can select the best lawyer for your needs based on factors such as their location, expertise, and client ratings.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Odini G. on ContractsCounsel
View Odini
5.0 (8)
Member Since:
August 7, 2024

Odini G.

Attorney
Free Consultation
Aspen
19 Yrs Experience
Licensed in CO, GA, NY
Emory University School of Law

I am an accomplished attorney with more than 19 years of experience and extensive expertise in business negotiations, commercial contracts, and technology transactions. With a proven track record of providing strategic legal advice and delivering exceptional results, I have successfully assisted numerous clients in drafting, reviewing, and negotiating various business arrangements. My experience encompasses a wide range of areas, including intellectual property, data privacy and security, SaaS agreements, and software licenses. I co-founded a reputable general corporate law firm with three offices in Aspen, Atlanta, and New York. As a partner and attorney, I represented diverse clients, including start-ups, public corporations, investors, financial institutions, educational institutions, and non-profit entities. With a focus on delivering comprehensive legal solutions, I provided general counsel, expert dispute resolution, efficient litigation management, and skillful contract drafting and negotiations for businesses across industries.

Recent  ContractsCounsel Client  Review:
5.0

"Supremely responsive and works surprisingly quickly. Strongly recommend!"

Jim B. on ContractsCounsel
View Jim
5.0 (1)
Member Since:
September 4, 2024

Jim B.

Managing Partner, Business Lawyer
Free Consultation
Portland, Oregon
24 Yrs Experience
Licensed in OR
Southern Illinois University

Since 2002, when I first received my law license and began practicing in criminal litigation, I have dedicated myself to providing competent and impassioned legal representation to my clients. Transitioning into business and intellectual property law and serving the Oregon community under the banner of INTELLEQUITY since 2016, I embarked on a mission to offer an unparalleled level of personalized legal guidance that empowers my clients through understanding, support, and legal mastery. As a seasoned attorney, I recognize that behind every case is a person with a distinct set of emotions, aspirations, and challenges. This is why my approach to legal services is not just about cases and statutes; it's about people and their lives. Whether it's navigating the intricacies of business law or safeguarding your intellectual property, I'm here to provide more than just professional counsel—I offer a compassionate, personalized approach to every case. This means keeping you well-informed at every step, empowering you with in-depth understanding, and steering you towards decisions that are legally sound and, more importantly, right for you.

Recent  ContractsCounsel Client  Review:
5.0

"Great person to work with. He helped gain a better understanding of my own business."

Dolan W. on ContractsCounsel
View Dolan
5.0 (693)
Member Since:
September 8, 2024

Dolan W.

Attorney
Free Consultation
San Diego, California
10 Yrs Experience
Licensed in CA
Purdue Law School

You need a lawyer who's more than just knowledgeable – you need someone who's on your side. That's where I come in. I'll be there every step of the way, offering clear communication and proactive solutions. Whether you're starting a business or navigating a complex legal matter, I'll help you make informed decisions and achieve your goals. I also have drafted many templates to save you money. Just use this link - https://www.contractscounsel.com/client/lawyer-profile/3764#Templates Why Choose Me? I put you first I'm proactive I'm efficient I'm accessible

Recent  ContractsCounsel Client  Review:
5.0

"Thorough, precise legal work. Delivered clear, well-cited answers across a genuinely complex mix of SAFE, securities, and crypto-specific questions. Highly recommend."

Ana C. on ContractsCounsel
View Ana
Member Since:
August 7, 2024

Ana C.

Managing Member
Free Consultation
Washington, DC
20 Yrs Experience
Licensed in DC
Columbia Law School

Fractional General Counsel for growing companies, mainly in the financial sector, including companies operating in Mexico or Latin America. My niche includes companies who need day to day legal services, but are not ready to hire an in-house lawyer, and companies whose in-house legal team needs additional support. I am admitted to practice law in the District of Columbia and Mexico. With a bicultural legal education and background, and an extensive network of contacts in both jurisdictions, I’m able to provide efficient and high-quality services to my clients. With more than 18 years of legal experience, I have: - Led the Legal Department of a financial institution held by a public company - Led the Legal Department of a family office holding investments in diverse sectors - Participated on several M&A transactions - Participated on an IPO process - Participated in the purchase of a banking institution in the U.S. by a foreign group of investors - Worked at law firms with international presence Legal experience mainly in Corporate Governance, Securities Regulations, M&A, Corporate Development, Contracts, Corporate Law, Compensation, Policy Development, Investor Relations, among others. Non-for-profit Board and pro-bono experience.

Michael L. on ContractsCounsel
View Michael
Member Since:
August 19, 2024

Michael L.

Managing Attorney
Free Consultation
Glastonbury, CT
29 Yrs Experience
Licensed in NY
New England Law/Boston

Solo practitioner, licensed in New York State 27+ years. Areas of practice: Small Business Law, Commercial Contracts, Commercial Litigation, Employment Law & Litigation, Estate Planning, Business Succession Planning.

Richard H. on ContractsCounsel
View Richard
Member Since:
September 3, 2024

Richard H.

Solo practice
Free Consultation
Dallas, Texas
45 Yrs Experience
Licensed in TX
Sum Svhool of Law

After 30 years of practice I large, publicly traded companies, I went out on my own. I engaged in general practice for 10 years before retiring. I continue to do work on a contract basis.

Dennis S. on ContractsCounsel
View Dennis
Member Since:
September 3, 2024

Dennis S.

Principal
Free Consultation
Las Vegas, Nevada
31 Yrs Experience
Licensed in CA, NV
Brigham Young University

Dennis Sponer co-founded ScripNet, a uniquely designed Pharmacy Benefit Management (PBM) company in 1997. After serving as In-House Counsel for one of Las Vegas’ largest healthcare conglomerates, Dennis devised a payor based technological solution to the challenge of pharmaceutical payment and remittance. As one of the first workers’ compensation specific Pharmacy Benefit Managers in the industry, Dennis pushed the boundaries of what a PBM can do. ScripNet was a three-time winner of the Inc. 500 and was named to the Inc. 5000 numerous times thereafter. Clients of ScripNet included some of the largest carriers, governmental entities, and self-insured employers in the nation, including FedEx, Starbucks, Lockheed Martin, the Cities of Dallas, Atlanta and Philadelphia as well as the State of Texas and the State of Nevada. After fifteen years of exceptional growth and class leading industry recognition, ScripNet was acquired in 2012 by Optum Healthcare Solutions. After selling ScripNet, Dennis served as Executive Vice President for the acquiring company and was successful in integrating ScripNet into the larger entity. His latest venture, HSARx, was a consumer facing Pharmacy Benefit Manager focused on the owners of health savings accounts. He sold HSARx to SwiftScript in October of 2023. Dennis obtained his Juris Doctorate from Brigham Young University where he served as Note and Comment Editor of the Law Review. He then obtained his Master of Laws in Taxation (L.L.M.) from the University of San Diego. After selling ScripNet, Dennis returned to school to earn his TRIUM MBA, the program jointly administered by New York University's Stern School of Business, the London School of Economics and HEC Paris. Dennis is a member of the 1999 Leadership Las Vegas graduating class, was named by InBusiness Las Vegas to its annual Top 40 Under 40 list, is a graduate of MIT's prestigious Birthing of Giants program and holds a certificate in full stack development from MIT. Dennis is licensed as an attorney in California and Nevada and is a past President of the Las Vegas Chapter of the Entrepreneurs' Organization. He serves on the Southern Utah University School of Business National Advisory Board, the SUU Entrepreneur Leadership Council and the UNLV College of Liberal Arts Board. Through his consultancy, SRX Advisors, Dennis serves as an advisor and legal counsel to various startups, health care technology and artificial intelligence firms.

Jonathan W. on ContractsCounsel
View Jonathan
Member Since:
September 4, 2024

Jonathan W.

Partner
Free Consultation
San Francisco, California
33 Yrs Experience
Licensed in CA, WA
Columbia University School of Law

Jonathan Wright offers 30+ years of legal and business expertise to clients seeking a trusted advisor. His experience as a CEO and General Counsel for tech, healthcare, and biotech companies enables him to provide seasoned guidance on complex contracts, strategic agreements, and business transactions. Whether you're starting a company, navigating financings, or handling day-to-day corporate legal needs, Jonathan offers valuable insights and support.

Antonio P. on ContractsCounsel
View Antonio
Member Since:
September 10, 2024

Antonio P.

Attorney
Free Consultation
Fort Wayne, Indiana
4 Yrs Experience
Licensed in IN
Atlanta's John Marshall Law School

At Pishvai Law, Tony's attention to detail and deep community roots define his practice. A lifelong Fort Wayne native, Tony returned home after attending law school in Atlanta, Georgia, emphasizing his commitment to serving his community firsthand. As a solo practitioner, Tony offers a level of personalized service and dedication unmatched by larger firms. With a focus on tailored solutions and individualized attention, Tony ensures that each client receives the care they deserve. Whether you're facing a complex legal matter or seeking guidance, Tony is dedicated to providing the support and expertise you need to navigate your case with confidence.

Andrew G. on ContractsCounsel
View Andrew
Member Since:
September 19, 2024

Andrew G.

Principal Attorney
Free Consultation
Cleveland, Ohio
11 Yrs Experience
Licensed in OH
Harvard Law School

Mr. Goodwin is an experienced transactional attorney, with experience working both for a large law firm and as in-house counsel for a leading global healthcare system.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a legal contract?

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

CONTRACT LAWYERS BY TOP CITIES
See All Tax Lawyers
IRS DEBT NEGOTIATION LAWYERS BY CITY
See All IRS Debt Negotiation Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city