My income fell significantly. What kind of tax debt relief is available for me?

This will sound odd, but if you’re “lucky” enough to continue to have a significant loss of income, you may be able to get some tax debt relief.

Let’s start with the bad news: there are no guaranteed ways to get out of a tax debt. For example, tax debts are almost never dischargeable in bankruptcy. And the IRS, for example, is not required to give relief to tax payers, even those in financial hardship. Any tax debt relief will be the result of a tax debt negotiation between the taxpayer and the taxing authority, such as the IRS.

Now the good news: the IRS is not, its reputation to the contrary, unreasonable. It acknowledges that taxpayers may not always be in a position to pay taxes—at least not in full or on time.

If you can show sufficient hardship—that’s why I wrote if you’re “lucky” enough to still be losing income—you may be able to settle your debt for less than the full amount, by way of what the IRS calls an Offer in Compromise or OIC.

If you can’t show that level of hardship, you may at least be able to come up with a payment plan that will let you make manageable payments over time to pay off your debt.

In either event, since what you can get it is up to IRS discretion and is the result of a negotiation with the IRS, it pays to have a practiced, knowledgeable negotiator in your corner. Having an experienced tax attorney advise and represent you can the difference between success and failure. Good luck.