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Taxpayers are usually overwhelmed when they need to pay back taxes to the IRS and are unable to write a check to pay off the amount owed. Having a tax bill is daunting and the IRS has a track record for being an evil, monolithic empire staffed by heartless, merciless employees who exist to try to make taxpayer's lives miserable. Luckily the reality is much kinder. Even though Congress has been belittled for inaction on many issues over the past few years it did taxpayers some favors by instructing the IRS to create several tax relief packages to assist people with authentic problems repaying their tax debts. Regretably most of these relief programs have been given very little press coverage and the majority of individuals who owe back taxes are uninformed of the possibilities available to them. The number one error made by people who have a tax bill is disregarding the IRS and wishing that they will disappear. Believe me, this never works. The IRS has a clear mandate from Congress; collect all of the taxes to be paid by individuals and corporations. Just because an individual won't respond to a demand for information or a tax bill does not mean that the IRS will stop trying to collect. Simply by recognizing that you received the letter from the IRS might help any future communications from being routinely confrontational. Receiving a letter from the IRS won't necessarily mean that what the IRS is alleging is right. New studies by third party groups indicate that the IRS has erroneous details or has generated an improper determination in close to 20% of the demands for taxes due sent out. Examine the notice very carefully and find out what the IRS demand is based upon. You typically have up to 60 days to answer to 1st or 2nd requests so be precise in your answer. If you have records and documents to dispute an IRS claim, show these documents and your answer in a very clear, even style. Don't be defensive or rude, accusing the IRS of incompetence will not make things any less complicated for you. If you do owe taxes, there are options available to you to aid you pay them in monthly payments. Never suppose that a payment plan is instantly created, you will need to work with the IRS to figure out what you can afford and how long the repayment schedule ought to be. Don't forget that interest will also be accumulating while you are dealing with the IRS and during your repayment time period. It is critical that you maintain the scheduled payments and keep all payments current, being in default on your tax settlement program eliminates all flexibility in working with the IRS. Another option for tax relief is tax reduction. In cases of personal disaster or emergency the IRS could possibly lower the amount of the principal you owe. This procedure requires a lot of proof of disaster and how the event or events caused personal and financial damage. This might require you to hire a tax professional who can help you to file the appropriate paperwork necessary to have the IRS look at your request to reduce your tax bill. Nevertheless, if your tax bill is substantial the expense of a tax lawyer may be much less than the amount of tax relief that you end up obtaining. Although there are no guarantees of relief when you are working with the IRS, some basic rules do apply that can help your case. Respond promptly, be courteous and truthful, have proper records and make sure that you live up too all the promises that you make. Tax relief is achievable but the method calls for patience and openness.