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Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!
Hi Kim. Yes, you can get this worked out. This happens all the time and the IRS is set up to handle situations exactly like yours. And, given that you owe less then $50,000, it's even easier than if the amount owed was in excess of $50,000. A taxpayer unable to pay the full amount of taxes due can deal with the IRS in one of two ways: i) if the taxpayer can pay it within 72 months, the IRS will work out an installment payment arrangement with the taxpayer; if the amount due is under $50,000, the taxpayer can do this on-line; or ii) if not, the taxpayer would want to file an application for an Offer in Compromise where the IRS will agree to forgive all or a portion of it that can't reasonably be paid within the 72 month period. There is a step by step process for filing the Offer in Compromise application, as well as the full details of the program, in the IRS Offer in Compromise booklet which you can find at the following website: www.irs.gov/pub/irs-pdf/f656b.pdf
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