Rock Bottom: So you’ve got an IRS tax debt? Don’t panic; you aren’t alone. Thousands of American Taxpayers owe the IRS in back taxes. The tricky part is getting the issue resolved, so you can get things back to normal. But with all of these tax resolution companies promising so many things, how do you know what’s best for you? Read up on some of the options available.

Offer in Compromise: You may have heard of this program through the “Pennies on the Dollar” commercials. But the Offer in Compromise Program is a little more complicated than that. The program involves proving to the IRS that you can’t possibly pay the debt, so you come to terms on a settlement, usually a much smaller amount than the actual debt. Depending on your financial situation, you may qualify for the program. Make sure you have an experience tax professional review your finances to see if you qualify.

Installment Agreement: This is a common resolution program. The qualifications are usually easy to meet and the process is very simple. The IRS allows you to pay the debt in monthly installments, rather than paying it all up front. Let’s face it, most people don’t have $50,000 dollars in their back pocket to pay the IRS. So this program allows you to break your debt without breaking your finances. But remember, the IRS decides how much you will be paying monthly.

Currently Not Collectible: If you’ve just lost your job, or some extenuating circumstance is keeping you from either of the above options, you could be eligible for Currently Not Collectible (CNC). This program basically states that if the government were to take any money from you, it would put you into a state of financial hardship. While this isn’t a final solution, this program can give you time to collect you finances and get back on your feet so you can resolve the debt at a later time.

Penalty Abatement: This program is specifically designed for penalties. Let’s say you had an IRS debt, but something major was keeping you from filing or paying the debt (death of a family member, illness of a family member, etc.). The original debt doubled or even tripled due to penalties that you don’t think were justified because you really couldn’t address the issue at the time. If this sounds like you, you can get up to 30% of the penalties removed with this program.

Do it Right: If you’re going to apply for any of the above programs, make sure you do it correctly. First of all, don’t let anyone tell you that you qualify for something unless they’ve reviewed your financial situation. Secondly, make sure it’s a company that you can trust. You want someone that can back themselves up with experience and knowledge. As long as you keep that in mind, you’ll be well on your way to resolving your tax issue once and for all.