A tax settlement can allow the taxpayer to pay a reduced amount that is far less than the original amount owed to the IRS. There are many reasons why the IRS or state tax agency would be willing to reduce the original amount owed. Every case is different though and it does take some time, work and experienced negotiating to make these arrangements.
Not every case will qualify for a tax settlement. Normally, there must be extenuating circumstances in your case that would suggest to the tax agency that you qualify. These include, but are not limited to:
Death in the family
Severe financial setback
Other significant or unique circumstances
You must prove to the IRS that your situation would make it all but impossible for you to honor the full amount of back taxes you owe. If you can do this, then the taxing authority may be willing to explore settlement options.
In most cases, a taxpayer will fare much better if they’re represented by a professional negotiator. Tax negotiations can be complex, stressful and exhausting. Most taxpayers are too emotionally involved to be good at this. It takes a skilled mediator who knows your case and can make a winning case for you. If you’re successful, you may be able to avoid future liens and garnishments. Once a balance is agreed upon, the repayment terms must be outlined. Finally, you’ll be able to pay the back taxes off and return to your normal life without this issue hanging over your head.
If you have a home and/or business, its important to make sure that these are protected in the agreement. With a good tax settlement negotiator, you can avoid tax liens on your home and business. This can protect your future assets as well. If there is an existing wage garnishment or bank levy, be sure to have these released as part of the agreement.
If you feel that tax settlement is the right choice for you, then first determine which type you would like to apply for. Next, fill out and submit the correct forms to the IRS. You can fill out the paperwork yourself or have a designated tax professional handle this on your behalf. In many cases, taxpayers chances of success are increased with the help of a tax relief professional. Since most people don’t fully understand tax laws and do not have top-notch negotiating skills, the best solution is hiring an experienced expert.
Many factors are taken into consideration as the IRS determines if you qualify. Though it can sometimes be a long-shot, it’s well worth the effort to at least make the attempt. If the IRS is constantly sending threatening letters and you feel concerned about your future, it may be time for a tax settlement professional to step in. The Tax Resolvers can give you the edge you need to get accepted into this program and qualify for a reduction in your taxes. You can get the IRS paid off and move on with your life. Please call us if you’d like to learn more.
Don’t try to fight the IRS alone, our tax professionals can help!