Taxpayer Bill of Rights #10 – The Right to a Fair and Just Tax System

Taxpayer Bill of Rights #10 – The Right to a Fair and Just Tax System

  • If you cannot pay your tax debt in full and you meet certain conditions, you can enter into an Installment Payment Agreement plan with the IRS where you pay a set amount over time, generally on a monthly basis.
  • You can submit an Offer In Compromise (OIC) asking the IRS to settle your tax debt for less than the full amount if you believe (1) you do not owe all or part of the tax debt, (2) if you are unable to pay all of the tax debt within the time permitted by law to collect, or (3) if paying it in full would cause you economic hardship or would be unjust.
  • The IRS has published a list of National and Local Guidelines covering the basic costs of living for use in considering a settlement Offer reducing your tax debt. IRS employees cannot use these Guidelines and will use your actual expenses if the guidelines would result in your not having enough money to pay your basic living expenses.
  • The IRS cannot Levy (seize) all of your wages to collect your unpaid tax. A portion will be exempt from Levy to allow you to pay basic living expenses.
  • You can receive help from the Taxpayer Advocate Service (TAS).