Negotiate With the IRS and Settle Tax Debt for Less

In 2025, the IRS rolled out its new Simple Payment Plan. Individual taxpayers who owe up to $50,000 can set up a simple payment plan online, over the phone, or through the mail. You can spread payments out over 10 years or until the collection statute expiration date if sooner.

If you owe back taxes, a CP14 notice of balance due will often be the first official notice you receive from the IRS. If you do not act quickly, you may later receive a CP503 notice demanding payment, and then a CP504 notice, which warns of potential collection actions like wage garnishments or bank levies. When you receive an IRS notice, you must act quickly to prevent further escalation. Contact Wiggam Law to schedule a consultation with our tax attorneys to explore your options and protect your financial interests.

An Offer in Compromise is an agreement with the IRS that allows you to settle your tax debt for less than the full amount you owe. It is typically used when you can prove that paying the full tax debt would cause financial hardship.

To qualify for an OIC, you must be up-to-date on past tax returns, current on quarterly estimated payments, and financially solvent enough to pay future taxes for the next five years. The IRS will evaluate your ability to pay, income, expenses, and asset equity.

A Partial Pay Installment Agreement allows you to pay off a smaller portion of your tax debt than what you owe over a series of manageable installments. The IRS will assess your financial situation to ensure you cannot pay the full amount but can make regular payments. If you are ineligible for a Partial Payment Installment Agreement, you may be eligible for a regular installment plan in which you pay the full amount of your tax liabilities, just over a long period in time instead of in one lump sum.

Filing for bankruptcy can potentially lower or discharge your tax debt. In Chapter 13 bankruptcy, your IRS debt is reviewed along with other debts, and a payment plan is negotiated. In Chapter 7 bankruptcy, a total discharge of back taxes may be possible if you meet certain criteria.

Currently Not Collectible Status is a temporary status where the IRS agrees not to collect on your tax debt due to financial hardship. This status can be requested if you cannot afford to pay anything towards your tax debt.

With extensive experience working the tax law system, pursuing a wide range of tax relief strategies, and building connections across the IRS, Wiggam Law can help you navigate the complex process of negotiating with the IRS. We handle paperwork, communicate with IRS employees, and represent you in meetings to achieve the best possible outcome for your tax situation.