(FLORIDA) – Filing taxes can be a yearly struggle for some or a constant source of stress for others. Errors or nonpayment can lead to costly consequences with the Internal Revenue Service (IRS).

FRLS - Florida Rural Legal Services recently launched its bi-weekly Facebook Live webinar series, during which Christa Page, the Low-Income Tax Clinic director, explained how taxpayers who are unable to pay their tax debt may take advantage of a number of affordable options.

If you owe money to the IRS, Page said the feds would send taxpayers a CP14 notice in the mail. She urges those who are receiving these notices to verify the official IRS seal to ensure legitimacy.

"Always check for accurate and up-to-date information," Page said. "Verify the notice number and date before taking action."

When facing outstanding debt, taxpayers can explore repayment agreement options. However, Page emphasized that these agreements aren't automatic — taxpayers must apply for them.

MONTHLY PAYMENTS

Page reviewed applications for taxpayers with IRS debt. The Streamlined Nondisclosure agreement allows monthly payments on the full debt without considering financial information.

Another option, the Partial Payment Plan agreement, requires disclosure of financial details. Page said the IRS only considers necessary living expenses when calculating repayment.

UNABLE TO PAY

Taxpayers unable to pay can apply for Currently Non-Collectible Status (CNC). This temporary protection allows time to rebuild finances. If the situation doesn't improve and the IRS doesn't default, the debt may be forgiven after 10 years or when paid in full.

PARTIAL PAYMENT

For those unable to pay the full amount, an Offer in Compromise (OIC) allows proposing a lower payment. Page noted a calculation determines the proper amount, but taxpayers can demonstrate need for reduction. OIC approval includes a five-year watch period requiring timely tax returns and payments.

CHOOSING AN OPTION

Page advises thoroughly examining each agreement. Those unable to pay may qualify for CNC or OIC. Partial payments may qualify for the Partial Payment Agreement or OIC. Full monthly payments qualify for the Streamlined Nondisclosure Agreement.

MORE INFORMATION

FRLS and Low-Income Tax Clinic will host webinars Sept. 13 and 27 on IRS audits and tax debts caused by spouses or ex-spouses.

ABOUT FLORIDA RURAL LEGAL SERVICES

Florida Rural Legal Services is a nonprofit law firm providing legal services to low-income individuals and families across Florida, ensuring access to justice regardless of economic status.