When it comes to settling tax debt, the IRS ensure that there is always a way to settle tax debt, regardless of the current financial situation that the person may have.

Federal law does grant the IRS the power to agree to a settlement of your tax debt for less than the actual amount you owe.

However, the process of actually getting the IRS to agree to a tax settlement is NOT simple or straightforward.

There are a number of viable ways to settle tax debt. Which method of settlement you choose should be based on your unique financial situation.

One of the most common ways to settle tax debt is with an Installment Plan.

Basically you agree to pay your tax debt over the span of many months by way of monthly installments. Though this kind of plan is often accompanied with high interest rates, at the very least you have the luxury of time to settle your debt gradually.

This is good for those who are not capable of paying the IRS debt in full because in a monthly basis, only a minimum amount is required for you to settle. And this agreement holds good until the debt is fully settled.

How long is your obligation to pay will depend on how much money you owe to the IRS. It is obvious that it makes sense to pay in as short a period of time as possible. This ensures that you're able to eliminate your debt quickly without having the need to worry about paying an inordinate amount in interest charges and penalties.

Matter of fact, the IRS is usually more than happy to set you up with an installment plan simply because they will be able to retrieve the money owed by you.

Another viable option that you can go for is the Offer in Compromise where you're only required to pay a lesser amount than the actual amount owed.

With an offer in compromise, you make an offer to pay an amount less than the original amount owed. Here you negotiate for compromise agreement with the IRS as long as you can prove to the IRS that getting a huge payment from you would in turn cause further financial hardship.

However, it's understood that reaching a compromise agreement with the IRS can be one of the most difficult resolve available for you but it is achievable.

Under certain circumstances there is a program where the IRS agrees to defer the collection of debt for an agreed upon period of time. The obligation is considered 'Not Currently Collectible'. Of course this latter option would only be available for those who truly have no other alternatives, perhaps due to illness or lack of assets.

When in doubt, it’s best to seek the advice of a tax professional who can help you choose the best way to settle your tax debt and increase the chances of it getting accepted. Fighting it alone might not be the most prudent thing to do.