The IRS isn’t always the bad guy and often gets a bad reputation. Some of it is deserved; they can be aggressive and overbearing when you owe back taxes. It can seem unfair and lead to a lot of undue stress.

The IRS follows the U.S. Tax Code, and, as such, they operate based on procedures put in place over the years. Some procedures are developed by Congress, while some are developed internally. But there are many procedures that benefit taxpayers. It’s not all bad and not everything the IRS does is a detriment to the taxpayer. What parts of the Tax Code can you take advantage of?

A few good examples include:

• Penalty and interest removals
• Financial hardship approvals
• Payment plans to pay debt over time
• Offer-in-compromise to settle taxes once and for all

While we’ve touched on these in the past, they bear repeating. These represent options for taxpayers to address their specific back tax situation with the IRS. It’s important to note that the IRS may not have an updated or accurate view of your financial or tax situation. All they may know is that you owe a certain amount for any given year. They also know if you owe any interest or penalties for any reason as defined by the Tax Code.

If your situation prevents you from paying your taxes, the IRS needs to know. They may be willing to work with you to develop a solution that fits your needs and allows you to address the situation on your terms, rather than theirs.

The IRS also has a 10-year limit on the time they have to collect taxes before the debt expires — this is by law. The IRS isn’t always the bad guy. They’re more flexible before they file tax liens and offer opportunities for a fresh start, which can be hugely beneficial. The Fresh Start Program is something you should look into. Learn how to use the tax code to your advantage!