If you are one of those who have defaulted on tax payment and now not in a position to pay pending taxes and penalties related to it, you can qualify for IRS debt relief. IRS debt is the debt you owe to the government for not paying the taxes on time. Whether you missed paying tax or did not pay full amount, you can come into radar of IRS for back taxes. Usually IRS is slow to detect who has not paid taxes properly. But when they do catch you, there is no way you can escape its recovery process.

It is imperative that you start working on repayment of tax debt as early as possible. The longer you wait, more you will have to pay since the interest machine keeps on ticking adding to your debt. Many people who are in this situation ask the question whether they should apply for tax debt relief themselves or should they go to a tax specialist. There is no easy answer to this. But as a rule of thumb, you can take care of this yourself if the tax amount you owe is less than $10,000. Even when you try to do it yourself and save money on hiring tax specialist, you will not find it easy. IRS forms and procedures are very complex. You need to be very careful and thorough while submitting your applications.

It is recommended to hire a tax professional or specialist to handle your case. They specialize in this area and are in a better position to guide you through this process. You should try to bring the tax specialist into the picture as early as possible to get maximum services out of him. There are many ways in which an IRS tax specialist or IRS tax attorney can help you some relief on your unpaid taxes.

The first and the best way to get IRS debt relief is something called IRS Offer in compromise. In this method, your tax specialist tries to convince the IRS that due to some unavoidable circumstance, you were not able to pay the taxes. If the IRS considers your application, they offer to reduce the tax payment which is due from your part. But, you will have to sign a contract with IRS in which you agree to pay taxes properly for next 5 years. It is a very good deal for people under tax debt.

Another way in which your IRS tax attorney can help is by getting tax penalty abatement. In this method, all the penalties or interest on pending tax can be reduced or even dismissed. This is again a complicated process therefore you will need good help from your tax specialist.

IRS payment plans is another option which your tax advisor can help you with. In this method, you fill in a form which is Form 9465, Installment Agreement Request with the IRS with the help of your attorney. If your application is granted, you can pay your tax debt in installments. However, there are a few conditions. The amount you owe should be less than $10,000 and the pay off should be done within 3 years. Apart from this, there are a few other payment plans like IRS tax loans, short term payment extensions and installment agreements.

IRS can put wage garnishment on your salary if you stop paying your taxes. If the taxes are over due for a long time, the IRS wage garnishment can be as high as 25% of your salary. There is something called freeze on wage garnishment or wage garnishment release which you can apply for through your tax specialist. This will help you relive from forced tax deduction from your salary.

There is another thing called IRS debt relief act of Mortgage Forgiveness Debt Relief Act which passed in 2007. People confuse this act with IRS tax debt relief. The mortgage forgiveness act is designed to make it easier for homeowners to get financial help with their mortgage, and also allows homeowners a tax break on the money that they saved during the course of this support. Earlier, if a person was forgiven payments on his mortgage, then that amount of money was added to his annual income thus making it taxable. This actually nullified the grant given by government.

It is not easy to get any of the above mentioned debt relief grants. But with right amount of help you should be able to come out of IRS tax debt.

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