If you owe more taxes than you are able to pay back you may be a candidate for tax debt relief. There are mitigating factors which are considered by the Internal Revenue Service when deciding whether or not your tax burden should be paid in full or whether they should relieve you of some or all of your obligation. But how does this process work and who must you speak with to see if this is available to you?
First, if you feel that you will be unable to pay your taxes it is important to reach out as soon as possible to the government agency to whom you owe the back taxes whether it be a state agency or the federal agency in order to explain to them that you feel you will be unable to pay this and that you are in need of assistance. This is because if you do not explain this to them and they are forced to audit you for back taxes it may be construed as fraud that you did not attempt to pay them and also did not attempt to explain why you did not pay them.
Also the earlier you reach out to them the more likely you are to have the time necessary to have your case looked over thoroughly before you start incurring penalties and fees. It would be a very bad area though if you in fact have to pay more money than you originally owed in the event that a tax debt relief is not offered to you.
Typically, once it is apparent that you are unable to pay your taxes they will have to send out an auditing agent to check your resources and income to see if you are in fact unable to pay back what you owe. If it is determined that you are worthy of tax debt relief then the auditing officer will make a note of this and your obligations will be reduced by the amount that is determined by the agency.