Owing back taxes to the IRS can be overwhelming, but you don’t have to face it alone. Many taxpayers struggle with mounting tax debt, penalties, and interest, but there are legitimate ways to reduce your IRS back taxes without getting into legal trouble.
At American Tax Defense, we specialize in helping individuals and businesses resolve tax debt efficiently and affordably. In this guide, we’ll walk you through the best strategies to reduce your tax burden, including IRS payment plans, penalty abatements, and tax negotiation solutions.
1. Set Up an IRS Payment Plan
If you can’t pay your tax debt in full, the IRS offers installment agreements to help you manage payments over time.
Short-Term Payment Plan
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Available for tax debts under $100,000 (including penalties and interest).
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Must be paid off within 180 days.
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No setup fee.
Long-Term Installment Agreement
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Available for debts under $50,000.
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Allows you to make monthly payments over 72 months.
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Setup fees apply but may be reduced for low-income taxpayers.
Our team at American Tax Defense can negotiate the best installment terms for your financial situation.
2. Request Penalty Abatement
If you’ve been hit with late payment or filing penalties, you may qualify for penalty abatement, which can remove some or all of the penalties applied to your tax debt.
Types of Penalty Abatement:
✅ First-Time Penalty Abatement – If you have a clean tax history and this is your first issue.
✅ Reasonable Cause Abatement – If you can prove that you couldn’t pay due to financial hardship, illness, or natural disasters.
American Tax Defense can file a penalty abatement request on your behalf and maximize your chances of approval.
3. Settle Your Debt for Less with an Offer in Compromise (OIC)
An Offer in Compromise (OIC) allows you to settle your tax debt for less than you owe if you meet the IRS’s strict financial hardship criteria. The IRS considers:
✔️ Your ability to pay.
✔️ Your income and expenses.
✔️ The equity in your assets.
Filing for an OIC is complex, and many applications get rejected. That’s why working with experienced tax professionals like American Tax Defense can improve your chances of securing a successful settlement.
4. Delay Collections with a Currently Not Collectible (CNC) Status
If you’re facing financial hardship, you may qualify for Currently Not Collectible (CNC) status, which temporarily halts IRS collection efforts, including:
❌ Wage garnishments
❌ Bank levies
❌ Tax liens
American Tax Defense can determine if CNC status is the right solution for you and help you file the necessary paperwork.
5. Get Help from a Trusted Tax Resolution Service
The best way to reduce your IRS back taxes and avoid legal trouble is to work with tax professionals who understand IRS policies and tax relief strategies.
At American Tax Defense, we specialize in:
✔️ Negotiating with the IRS to lower your tax liability.
✔️ Setting up affordable payment plans that fit your budget.
✔️ Applying for penalty abatements to reduce fees.
✔️ Protecting you from aggressive IRS collection actions.
Take Action Today—Reduce Your IRS Back Taxes!
Ignoring IRS tax debt can lead to wage garnishments, bank levies, and even legal consequences. But you don’t have to face it alone.
American Tax Defense is here to help. Contact us today for a FREE consultation, and let’s create a customized tax resolution plan that works for you.
📞 Call now or visit American Tax Defense to get started
