Tax Relief Blog
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.
How can a Tax Settlement Help me Financially
An IRS tax settlement can help you financially, so look into it. What happens is that when you owe the IRS they can require a huge amount of money from you. If you don’t pay it, they can freeze your bank accounts and levy other assets. Then you won’t have any funds that you can work with. They can even put a tax lien on your property. This will tie up everything you have and that is an unbelievable predicament to be in.
With an IRS tax settlement, you can offer a lump sum payment to pay off the debt. You can also offer at least 20% of the amount you owe up front. Then you can make arrangements for monthly payments on the rest of it. This will help to reduce the amount of money you have to come up with all at once.
Getting Assistance with an IRS Tax Settlement
The problem with getting an IRS tax settlement is that so many people don’t know the right way to go about it. We can help you to offer a settlement that the IRS is going to be approving of. Then you won’t have to continue with the struggles involved with your tax debt.
The other element of it is that the IRS does offer several options for those that owe back taxes. There isn’t a one size fits all tax settlement offer out there. We are aware of the various options, and we can explore them with you. Then you can select the one that works best with your particular financial situation.
We can help you with the application process. You will have to pay a fee when you apply for an IRS tax settlement. That isn’t refundable regardless of if they approve your settlement offer or not. We can help to increase the chances of them accepting your offer the first time around.
Good Standing
Once the IRS has approved your tax settlement offer, then you will be considered to be in good standing with them again. This is important to you and to the IRS. However, you have to make all of your payments to continue being in good standing. If you default on even a single payment, they can void out the entire agreement. That is why we help you to make sure you can afford the obligation you agree to with the IRS.
