 TITLE: How Does Tax Relief Work? CONTENT: Ways to Get Tax Relief\n----------------------\nWhen it comes to strategies for managing taxes you can't afford to pay in full when they're due, you have several options. Below are four methods to consider.\n*   **IRS Repayment Plan**  \n    The IRS may allow you to break down your full balance into smaller payments. To qualify for a long-term payment plan (paying over 120 days or longer), you need to owe $50,000 or less in combined taxes, penalties and interest. For a short-term payment plan of 120 days or less, your tax bill can be as high as $100,000.Although IRS payment plans can be helpful if you don't have the funds to cover your tax bill in full, they come with a cost. Depending on the option you choose, you may pay a setup fee of up to $149 plus penalties and interest until your balance is completely paid.\n    Need more information about IRS repayment plans? This IRS FAQ page may help.\n*   **Offer in Compromise**  \n    If you're struggling to pay your full tax bill, the IRS might allow you to settle your tax debt for less than you owe through what is known as an offer in compromise. Per the IRS, an offer in compromise \"may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.\"When reviewing your application for an offer in compromise, the IRS will consider factors such as:\n    *   Your ability to pay\n    *   Your income\n    *   Your expenses\n    *   Your assets\n    To see if you qualify to settle your tax bill for less, check out the IRS Offer in Compromise page. You can also use the Offer in Compromise Pre-Qualifier online to confirm your eligibility and prepare your preliminary proposal.\n*   **Penalty Relief or Interest Abatement**  \n    There's a chance you may qualify for penalty relief from the IRS. This means that the IRS forgives the penalties you've been charged on your tax bill if you meet certain criteria, such as not having any penalties for the past three tax years or paying or arranging payment for any taxes owed. You will still owe your taxes even if you qualify, but your overall debt will be lower once the penalties are removed from your outstanding balance. For more information, check out the IRS guide on penalty relief.Interest abatement, or forgiveness on the interest you owe toward unpaid taxes, may be available as well, but it's rare.\n*   **Personal Loan**  \n    Another option to consider if you don't have the funds available to pay your tax bill is taking out a personal loan. Determine whether you can secure a personal loan for less than an IRS payment plan offer before going this route. If you do opt to use a personal loan to pay for your tax obligation, research loan rates and terms and make sure you're getting the best rate available. It can also be helpful to check your credit reports before you apply to know what lenders will see when they review your application. END