For taxpayers who are unable to pay their taxes because of a permanent situation, they can apply for an Offer in Compromise from the IRS. An Offer in Compromise can let the taxpayer settle their tax bill for less than the amount due. Review the information for an Offer in Compromise.
You didn't indicate what state you live in, but your state may have a similar program. You can visit your state’s Department of Revenue for more information. Review the TurboTax article How do I contact my state's Department of Revenue? to find your state.
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