A new law is going to make it tougher for you to step forward and negotiate your debt with the Internal Revenue Service.

Taxpayers who feel they absolutely cannot pay their full assessment still can ask for a tax break. Specifically, this is done through a process called an “offer in compromise,” or OIC. An offer in compromise allows the Internal Revenue Service to accept less than the full tax payment under certain circumstances.

It used to be you filled out a form and paid a $150 fee to start the OIC process going, which didn’t guarantee anything other than the IRS would consider your offer.

Under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), taxpayers making a lump-sum offer in compromise now must make a 20 percent nonrefundable, up-front payment in many cases. Typically, with a lump sum offer you pay off your reduced tax debt in five or fewer installments.

One thing hasn’t changed: Criteria for accepting an offer are strict.

If you’re experiencing some unusual economic hardship, you may qualify for an OIC. But mind you, an OIC is extremely hard to get approved. Among other things, you have to provide detailed financial information to prove your economic status, and you have to exhaust all other payment options.

One such payment option is an installment agreement, which allows you to pay your full tax obligation in monthly payments. In 2005, 2.6 million taxpayers paid their tax bills in monthly payments, according to the IRS.

Last year, the IRS received 74,000 offers in compromise. Only 19,000 were accepted, resulting in a tax collection of more than $325.6 million, according to IRS spokesman Jim Dupree.

There is some good news about changes in the OIC program. If the IRS doesn’t make a ruling on your compromise offer within two years, then the offer will be deemed accepted. However – come on, you knew there was a caveat – if some of the tax owed is tied up in any court proceeding, the two-year rule doesn’t apply.

Additionally, under the new law taxpayers qualifying as low-income don’t have to put up the 20 percent payment.

To start the OIC process, you have to submit Form 656 “Offer in Compromise” and the application fee of $150. The form provides detailed instructions for completing an offer and includes all of the necessary financial forms. Don’t skip a single step.

A new version of Form 656, revised to reflect the new law, will be posted on IRS.gov in the next few weeks. In the meantime, taxpayers may continue to use the 2004 version of the form, according to the IRS.

Even though it’s tough to settle a past-due tax debt, at least try. Doing nothing only makes things worse when the IRS finally catches up to you.