In situations where a taxpayer has a greater tax liability than funds, there are several options available. The taxpayer can, of course, borrow the money from a third party to satisfy the debt to the IRS, or even arrange for an installment payment agreement with the IRS. When the debt is so substantial with respect to a taxpayer’s overall financial position that he may not be able to satisfy the debt in full, or there is a real risk of financial ruination, the taxpayer can seek to compromise that debt, resulting in payment of a lower amount than the total due.
Read More: https://www.cpajournal.com/2018/02/07/irs-offers-compromise/
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