Taxpayers are usually stressed out when they must pay back taxes to the IRS and are not able to write a check to pay off the debt. Having to deal with a tax bill is scary and the IRS has a track record of being an evil, monolithic empire manned by heartless, unkind workers who exist to try to make taxpayer's lives miserable. Fortunately the reality is much kinder. Even though Congress has been criticized for inaction on several concerns over the past few years it did taxpayers some favors by telling the IRS to create several tax relief tools to assist citizens with authentic problems settling their tax bills. Unfortunately the majority of of these relief programs have received hardly any press exposure and the majority of people who owe back taxes are uninformed of the possibilities attainable to them. The most common error made by individuals who owe taxes is dismissing the IRS and hoping that they will vanish. Believe me, this never works. The IRS has a specific mandate from Congress; collect the taxes to be paid by individuals and businesses. Just because an individual does not respond to a demand for info or a tax bill will never mean that the IRS will quit looking to collect. Just by recognizing that you received the notice from the IRS might help any future communications from being routinely confrontational. Receiving a notice from the IRS will not guarantee that what the IRS is claiming is correct. Recent reviews by third party groups reveal that the IRS has wrong details or has generated an incorrect determination in almost 20% of the requests for taxes due sent. Examine the letter meticulously and understand what the IRS request is based on. You normally have up to 60 days to answer to 1st or 2nd requests for information so be comprehensive in your reply. If you have paperwork to question an IRS claim, show these documents and your answer in a straightforward, even style. Avoid being defensive or vulgar, accusing the IRS of incompetence is not going to make things any less complicated for you. Should you owe taxes, there are plans available to you to help you pay them in installments. Never presume that a payment plan is automatically created, you will need to work with the IRS to determine what you can afford and just how long the payment schedule should be. Bear in mind that interest will also be accumulating while you are negotiating with the IRS and during your repayment time period. It is essential that you maintain the scheduled payments and keep all payments current, being in default on your tax settlement plan removes all versatility in working with the IRS. A different chance for tax relief is tax reduction. With cases of personal disaster or crisis the IRS could actually lower the amount of the principal you owe. This method involves a lot of proof of disaster and just how the event or events caused personal and financial hardship. This might require you to use a tax professional who is able to assist you to file the correct paperwork required to have the IRS give consideration to your request to lower your tax debt. Nevertheless, if your tax debt is significant the cost of a tax lawyer may be far less than the total amount of tax relief that you end up receiving. Though there are no guarantees of relief when you are working with the IRS, some basic guidelines do apply that will help your cause. Reply quickly, be polite and truthful, have appropriate paperwork and be certain that you honor every one of the promises that you make. Tax relief is achievable but the method demands persistence and honesty.