Any individual who has developed an IRS tax liability may have several ways in which they can pursue IRS tax resolution if the IRS recognizes them to have compliance status.  To that end, the IRS offers a variety of opportunities to resolve tax debt, and the individual may choose whichever opportunity best suits his/per personal financial situation.  The main avenues for pursuing IRS tax resolution include: the 1) Offer in Compromise; 2) Currently Not Collectible status; and the 3) Installation Agreement.  Read additional articles I have posted for more information regarding these methods of resolution.  Personal Compliance is a stipulation for all of the aforementioned opportunities, and for the individual, compliance requires two things.

Firstly, an individual must have filed every tax return that is overdue.  Additionally, the taxpayer needs to have completed all tax returns in the previous six years; however, the time frame may be extended depending on the circumstances, and the taxpayer may not be required to file in years that he/she did not make sufficient income to warrant a tax return.

The second concern is that the taxpayer be in compliance with all current tax payments.  In cases of individuals who are self employed or receive revenue from dividends or royalties, compliance includes estimated tax payments, which must be made four times per year, after each quarter.  So, for example, before a self-employed wage earner can resolve his/her tax debt, the IRS demands that he/she make all requisite Estimated Tax Payments.  It is advisable to know whether you are deemed compliant by the IRS, and if not, how you can take steps to obtain compliance status.