My girlfriend has an unpaid tax bill of $10,000 and the IRS has just ordered her to pay $200 per month until the debt is paid . If she get's a debt consolidation loan and pays the entire amount off , in an attempt to have lower monthly payments , under any circumstances will the IRS be willing to reduce the amount of the debt ?

Fr_Chuck

She needs a tax attorney or tax accountant. The IRS has tax repayment plans and forgiveness programs. But you will have to find an expert that works primary with only the IRS.

Most of the credit counseling companies only work with the credit card companies and other lenders, they normaly are not much help with the IRS.

AtlantaTaxExpert

Fr. Chuck hit it right on the nose. A debt consolidation loan is probably not a good idea.

However, I recommend she hire an enrolled agent. They are specialized tax professionals licensed by the IRS to represent clients before the IRS. They are a LOT cheaper than either tax attorneys or CPAs, and they often do a better job (IMHO)!

Fr_Chuck

Thank you Atlanta Tax, that was what I was thinking of, but I thought they had to be an attorney or CPA to practice this with the IRS.
Thanks for the good info.

john perry

A great help guys- Thanks !

AtlantaTaxExpert

Glad to help!