What exactly is tax relief?

IRS tax relief is not one program. It is a name people use for several IRS options, and each one has its own rules. This page is general information, not legal advice.

The main kinds of IRS relief

Penalty relief is the first. The IRS penalty relief page lists three types: first time penalty abate and administrative waiver, reasonable cause, and statutory exception.

A payment plan is the second. The IRS says you can pay your tax debt over time with one. IRS payment plan fees covers how they work.

An offer in compromise is the third. For an offer, the IRS offer page says it considers your income, expenses and asset equity.

A delay in collection is the fourth. The IRS says it may temporarily delay collection if you can't pay because of financial hardship.

What tax relief does not mean

It does not mean the debt disappears. About a collection delay, the IRS says you still owe the full amount, and it is not forgiven or cancelled.

Interest keeps adding up

The IRS says penalties and interest continue to build until you pay your balance in full. There is one link between them. The penalty relief page says that if any of your penalties are reduced or removed, the IRS will automatically reduce or remove the related interest.

Which kind fits you

That depends on what you owe, what you earn and what you own. What to do when you owe the IRS and can't pay puts the options in order. Choosing a tax relief company lists what to check before you hire help, can the IRS take my house? covers the limits on a levy, and owing federal tax in Spokane adds the local notes.