A tax settlement is an agreement between a taxpayer and the IRS that allows the taxpayer to settle an outstanding tax debt for less than the full amount. This can also be referred to as an offer in compromise – the most ideal tax resolution.
Tax settlements are unlike installment agreements, which require the taxpayer to incrementally pay back their tax debt in full, rather than at a reduced amount.
Successfully negotiating a tax settlement is very beneficial for delinquent taxpayers. Since the settled upon amount is significantly reduced, taxpayers can pay off their debt in full much quicker and avoid late fees, interest, and even penalties such as tax liens, bank levies, and wage garnishments.
There are two ways taxpayers can choose to pay off the tax settlement: lump sum and incremental. A lump sum payment is when a taxpayer chooses to pay off their entire tax settlement at once. The ladder is when the IRS establishes a set schedule for payments that, when completed, equal out to the taxpayer’s tax settlement.
How Does One Qualify for Tax Settlement?
The IRS offers tax settlements to taxpayers who can prove that extenuating circumstances or hardships prevent them from paying back their debt in full. The IRS is willing to explore the individual situations of taxpayers to determine if they qualify for tax settlement.
Proving financial hardship to the IRS is doable, but it can be a time-consuming process as it requires the collection and organization of lots of paperwork. Moreover, should the request for tax settlement be rejected, the IRS may attempt to force a taxpayer into an installment agreement.
Why Work with TaxRise to Secure my Tax Settlement?
A taxpayer can try to apply for a tax settlement on their own; there are no rules that force them to seek the assistance of a tax professional. However, the evidence points to a higher success rate for taxpayers who enlist the help of a third party.
Having TaxRise file a tax settlement on your behalf could also lower the costs of your tax debt. This greater reduction in cost is due to the skill and experience that TaxRise brings to the table when we negotiate with the IRS.
Working with TaxRise will take a massive weight off of your shoulders. Of course, there is still work that needs to be done on our end, but the heavy lifting will be our responsibility. Negotiating with the IRS is our job, it shouldn’t have to be yours too.
How To Get Started
Let our tax pros handle your case and get you the best settlement possible. Call a specialist today at 833-419-RISE (7473) or click below to get started.
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