Many people think that IRS debt settlement is a simple process that takes no time and effort.
This is far from the case.
Not only does it take time to decide if IRS debt settlement is right for you, it is a long process once you get moving.
And remember, the IRS does not have to accept your offer to settle.
They can easily reject your claim, which then puts you back at square one and looking for another payment option.
One of the first things you should know is that there is more than one type of IRS debt settlement.
It is a common misconception that all IRS debt settlement plans are the same.
There are quite a few ways that you can do this.
Here are several types of IRS debt settlement:

1. Office in compromise: This is a process in which you offer to pay the IRS less than what you owe.
   Have you ever heard a tax settlement company say that the can settle your debt for pennies on the dollar? An offer in compromise is what they are referring to.
   
2. Uncollectible status: The IRS can review your account and finances to determine that you are currently uncollectible.
   When this happens they will suspend the collection process.
   By combining this with the statute of limitations you may be able to avoid paying your entire debt.
   
3. Statute of limitations: From the date of assessment the IRS has 10 years to collect the money you owe.
   After this time goes by the IRS can no longer collect from you.
   
4. Penalty abatement: It is common for people who owe taxes to have a lot of money in penalties added to their already large debt.
   If you can prove that you cannot pay, you may be able to qualify for penalty abatement which will remove some or all of these charges.
   

If you are unsure of IRS debt settlement and which option(s) to take advantage of, speak with a tax professional.