In some situations, it is possible for the IRS to stop collections and put your debt on hold. You need to be current with all tax payments and compliant with all filings, but temporarily unable to pay a back-tax liability. In such as situation, the IRS may classify the debt as uncollectible.
The IRS essentially puts you in the filing cabinet but will check in from time to time. The debt remains – as do penalties and interest, which keep growing – but the IRS agrees to refrain from collection activities for a set period of time.
Other information that you may be interested in
We strive to save our clients money, time and stress. Just as there are many different tax related problems, there are many options for tax resolution. Call us at 888-902-0778 for a free consultation. In a few minutes we will help you to better assess what options are best for your unique situation.