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If you're concerned about negotiating with the IRS, don't worry. There are professionals who specialize in resolving tax issues and can help you find a solution that fits your financial circumstances. One option is to set up a low cost tax relief plan, which may allow you to pay in installments or reduce the amount owed. In some cases, you may even be eligible for complete forgiveness of your back taxes.

If you choose an installment payment plan, you'll need to complete Form 9465 and Form 433-F to request an agreement for monthly payments. However, be careful what you disclose to the IRS as they aim to collect funds. If you have assets or income, it may be wise to seek professional advice before submitting your financial information. Additionally, any tax refunds will be used to pay off your past due balance while you're making payments.

Another option is to negotiate a partial payment settlement agreement. You'll need to submit Form 9465, Form 433-F, and a letter explaining why you're seeking a reduction in your total tax obligation. You'll also need to provide financial proof, and it may be worthwhile to have a professional review your package before submission.

If you've seen ads promising to settle your tax bill for "pennies on the dollar," they may be referring to the Offer in Compromise program. There are three categories under which the IRS accepts Offer in Compromise requests, including Doubt as to Collectability, where the person filing must demonstrate they cannot pay the full tax obligation due to financial hardship or some other compelling reason. Traditionally, Offer in Compromise involved tedious paperwork and long waits. However, the Fresh Start program was instituted in 2011 to provide additional relief and a more streamlined process under certain conditions.

If you're looking for relief on tax penalties, you may be eligible for the Tax Penalty Abatement program. You'll need to provide a compelling reason, such as a death in your family, long-term unemployment, or significant property damage or loss due to a natural disaster.

If you simply cannot pay what you owe to the IRS, you may request Financial Hardship status. You'll need to provide detailed financial information and your account may be placed in Currently Not Collectible status. However, you will still owe taxes to the IRS, and your circumstances will be re-evaluated under certain conditions.

Depending on your circumstances, you may be able to wait out your tax obligations and have them wiped from your record by waiting out the statute of limitations. The statute of limitations for federal income taxes is generally ten years, unless fraud is involved. However, calculating the statute of limitations can be tricky, and it's best to consult a tax professional to obtain accurate dates and other essential information if you intend to take this approach.

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