When a taxpayer decides to resolve and pay back the owed amount using any one of the IRS payment programs/filings/settlements, it is called a tax settlement. Internal Revenue Service or IRS offers a tax settlement if the concerned taxpayer is struggling to pay back the tax debts or if there is a valid reason to nullify the penalties. In fact, the IRS offers more than one way for taxpayers to settle their tax debts. While the debate about whether you will get a settlement or not depends upon your financial situation, the type of settlement you will be allowed to opt for is dependent on the severity of your monetary and financial situation / troubles. Even though the IRS prefers that every individual or business pays his/her taxes completely, they can make some exceptions if the situation arises.
The trust fund recovery penalty (TFRP) can be applied to any responsible person who willfully fails to collect or pay trust fund taxes. The penalty amount is equal to the total amount of the tax that was not paid, up to the full amount. This is why it is sometimes known as the 100% penalty. The penalty is separate from the tax and the employer’s liability for such taxes.
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If you haven’t paid back taxes, penalties, or interest – you may be able to work with us to apply for an Offer in Compromise (OIC) with the IRS in order to get compliant, alleviate your issues with the IRS collectors, and move forward. An OIC is an agreement to settle your tax liabilities for less than the full amount owed. The good news is that it may be easier than you think. In the spring of 2012 the IRS modified their offer in compromise guidelines, in an effort to work with struggling taxpayers, making it much more favorable to the taxpayer.
Offer in Compromise
Often we feel a strange sense of desperation creeping in to our body, mind and soul that turns into a full scale panic attack. The reason…tax debts. It is not an uncommon fact; you are one of the millions of people each year who find that they owe taxes to the IRS. Tax professionals when asked for advice suggest “Offer-in-Compromise” as one of the ways to get relief from the taxes that one owes to the IRS.
HOW TO GET TAX DEBT RELIEF
One of the most inevitable and obligatory duty and yet most disliked one, of the American citizens is paying taxes. Even though it is disliked by many, refusal and negligence in doing so can be held accountable; in the harshest manner. Taxes are unavoidable. Period. They have to be paid. Turning a blind eye to pay taxes and filing income tax returns, is why the problem of taxes arises. If such problem arises, running from pillar to post will not help you. You will need a solid professional help in tackling tax debts. It is then people will most likely need a tax debt relief.
Mike Habib is not a tax attorney, but a Circular 230 licensed tax professional. What does this mean for you? Mike is a professionally licensed EA Enrolled Agent with the IRS who has over 20 years of working in the financial and tax field. There are several ways to handle your tax issues. The best way is to set an appointment and allow our office to review your situation to see what the law allows us to do. The absolute worst thing you can do is to ignore your tax issue.
The Internal Revenue Service today announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past.
“This phase of Fresh Start will assist some taxpayers who have faced the most financial hardship in recent years,” said IRS Commissioner Doug Shulman. “It is part of our multiyear effort to help taxpayers who are struggling to make ends meet.”
Unpaid back taxes can attract serious penalty from the IRS, and getting professional tax help is the best option to resolve this issue. Individual and business taxpayers in San Diego, CA metro area of greater San Diego, Carlsbad, San Marcos and National City with back taxes accumulate when you have not paid your federal or state taxes for a variety of reasons. You may not have been sure of your tax liability or could not afford to pay the tax or simply just did not get around to filing your tax return. Whatever the reason, the IRS is sure to catch up with you soon and enforce their aggressive tax collection techniques.
Businesses and individuals in New York metro such as Manhattan, The Bronx, Brooklyn, Queens, and Staten Island often require professional IRS help to resolve tax related issues. The tax laws, state and or federal tend to be complicated and you rarely have a very good understanding of the laws as they pertain to you or your tax matters. Unfortunately, the IRS has no sympathy for your lack of knowledge and will not accept that as a valid excuse.
What is an IRS Tax Settlement?
An IRS tax settlement is an agreement between you and the IRS regarding what you owe them. It is a negotiation where you pay an amount that is less than you originally owed. The IRS is often willing to take a deal rather than to have to continue to fight to get funds owed to them. This is especially true if it isn’t possible for the person or business to pay what is owed.
An IRS tax settlement also involves various penalties, interest, and fines being removed from what is owed. When all of that is added on, it can increase the overall debt dramatically. Many people don’t realize that they can offer an IRS tax settlement and get out from under that stressful situation.
While they do prefer to get the full amount of money that is due to them, they are realistic about it. They don’t want to be hassling people or businesses for money. They also know that you can’t get blood out of a turnip. Don’t ignore the IRS when they tell you that you owe them money. Instead, see what you can do through a tax settlement offer.