The IRS offers multiple back tax resolution programs to taxpayers based on their individual financial status. However, before the IRS will consider an offer to resolve back taxes, taxpayers must be fully compliant with their tax obligations. The exact tax obligations vary, but typically taxpayers must have all past-due tax returns filed and they must remain compliant with ongoing payments.
The simplest and fastest way for taxpayers to settle their back taxes would be through fully paying their back taxes to the IRS. However, even if a taxpayer has the required funds to repay the IRS, it can still be a daunting task to engage in. Obtaining accurate and consistent information about your tax account from the IRS can be quite a struggle. However, through our Full Pay Service we will provide the correct payoff amount, a break down of the specific years owing, and clear and specific payoff instructions. We will even follow up with the IRS and ensure your payment is received and processed.
Another option for IRS tax debt settlement would be through an Offer in Compromise. An IRS Offer in Compromise allows taxpayers that cannot afford to fully pay their back tax liability, the chance to lower their due amount according to their financial situation. The IRS looks at a taxpayer’s past, current and future financial situation when evaluating whether an Offer in Compromise should be accepted.
If a taxpayer does not qualify for an IRS Offer in Compromise then another tax settlement option is negotiating an Installment Agreement with the IRS. An Installment Agreement allows taxpayers that cannot afford to fully pay their back tax liability the option to pay their back taxes through monthly payments, which for some is more manageable. Depending on the circumstances and the amount of time that the IRS has left to collect the tax debt, the Installment Agreement may pay all or part of the back tax liability.
The fourth option for IRS tax settlement is when the IRS places a taxpayer’s account on Currently Not Collectible (CNC) status. The IRS will make this decision when they have determined that they are presently unable to collect the taxes from the taxpayer by full payment or through an Installment Agreement. Once the account is placed on a CNC status, the IRS does not pursue collection activity against the taxpayer and the statute of limitations on the tax liabilities will continue to run. Unless the taxpayer’s financial situation changes, the account will remain on a CNC status until the tax liabilities expire. However, if the taxpayer’s financial situation improves the account will be taken off of CNC status so that the IRS can collect the taxes through full payment or an Installment Agreement.
The last option for a taxpayer hoping to settle their tax debts is through filing for bankruptcy. When filing bankruptcy the taxpayer must examine the age and type of back taxes. Recently assessed federal income back taxes and business-related federal payroll back taxes cannot generally be discharged in bankruptcy. If you are considering filing bankruptcy you should speak with a bankruptcy attorney regarding whether your IRS back taxes can be discharged in a bankruptcy.
Highly Experienced Tax lawyers have the education, training, and experience to help you solve your tax troubles. A competent tax lawyer will be knowledgeable about the IRS’ complicated tax code and therefore, better suited to help you resolve your tax debt.
IRS Defense As you probably already know, the IRS can be very aggressive in their collection efforts. If you feel the IRS has treated you unfairly, then it is in your best interest to hire someone who has experience in dealing with the IRS and won’t be intimidated.
Privileged Communications When you communicate with a tax lawyer or his or her staff, you can rest assure that what you tell them will remain confidential. Like all lawyers, tax attorneys are required to keep your communications confidential. They will only discuss with the IRS your financial information in order to resolve your tax debt.
Ethical Standards Tax lawyers and attorneys are licensed and regulated by their respective state bars. They are required to complete a minimum amount of continuing legal education to remain up-to-date on their profession. They are also required to be honest in their communications. To do otherwise, would be to risk disciplinary sanctions by their state bar.
Skilled Negotiators A tax lawyer’s negotiation skills and experience come in handy when negotiating with the IRS to resolve your debt. A tax lawyer can negotiate a manageable tax resolution since they have the experience and negotiation skills necessary to deal with the IRS.
Not Intimidated Most taxpayers are intimidated by the IRS and the IRS knows this. On the other hand, tax lawyers are not intimidated by the IRS because they know what the IRS can and cannot do. Competent tax attorneys will not back down in their negotiations with the IRS until they have done the best they can for their clients.
The IRS doesn’t really want you to know you can settle tax debts for a percentage of the total owed. In many cases, the entire tax debt can be eliminated. The only way to find out about the various alternatives in any detail is to spend hours pouring over tax code books, or take a shortcut to resolution through the services of a tax relief associate.
Point A to Point B
When you need to settle tax debts, the quickest way to get from point A to point B is by using the services of a tax specialist. A tax specialist has years of experience both negotiating and settling a large variety of tax accounts. There are many different routes which can be taken between the 2 points and the one that works best for you depends on the facts of your situation.
Anyone can get in trouble with the IRS. The IRS doesn’t care how poor or rich you are and doesn’t care if you’re the most famous person in the world. In fact, the IRS uses public figures as examples to the general public. It’s a warning to everyone the IRS means business.
What the IRS doesn’t like to talk about are the many ways you can settle tax debts. For example, you can request an audit reconsideration of a closed audit. It’s possible to reopen an audit which created a tax debt you can’t afford to pay when certain situations existed at the time of the audit. One of those situations is you did not attend the audit because you didn’t know about it.
Another way to settle tax debts is through the Offer In Compromise. The Offer In Compromise enables you to pay the IRS an amount significantly less than the amount owed with the balance being written off. It’s highly recommended the Offer In Compromise be negotiated by a tax attorney or tax representative in order to increase your chances of success.
Direct Route
Of course, there are more direct routes you can take in order to settle tax debts. If the tax debt is more than 10 years old the taxpayer doesn’t owe the debt any longer. But the IRS has to be notified and will probably make attempts to resist the write-off.
In addition, you can settle tax debts by filing bankruptcy. A lot of people don’t know that if a tax assessment is 3 years old or older it can be included in a bankruptcy filing. There’s also innocent or injured spouse regulations which can enable a person to be relieved of responsibility for a tax debt they did not create.
The variety of ways to settle tax debts provide lots of opportunity for negotiating an agreement with the IRS. The best way to insure you get the best settlement possible is by retaining a tax expert to represent you at the IRS.
also are attorney fees tax deductable. The law suit was from a car accident and was settled out of court with me paying a substantial sum to the other party.
Thanks, Mike
Video on income tax attorney. Have you received an IRS audit letter or phone call from an IRS agent? Should you panic? No. Should you be concerned? Yes. Should you handle it yourself? Absolutely no…
Highly Experienced Tax lawyers have the education, training, and experience to help you solve your tax troubles. A competent tax lawyer will be knowledgeable about the IRS’ complicated tax code and therefore, better suited to help you resolve your tax debt.
IRS Defense As you may already know, the IRS can be aggressive in their collection efforts. If you feel the IRS has treated you unfairly, then it is in your best interest to hire someone who has experience in dealing with the IRS and won’t be intimidated.
Privileged Communications When you communicate with a tax lawyer or his or her staff, you can rest assure that what you tell them will remain confidential. Like all lawyers, tax attorneys are required to keep your communications confidential. They will only discuss with the IRS your financial information in order to resolve your tax debt.
Ethical Standards Tax lawyers are licensed and regulated by their state bars. They are required to complete a minimum amount of continuing legal education to remain up-to-date on their profession. They are also required to be honest in their communications. To do otherwise, would be to risk disciplinary sanctions by their state bar.
Skilled Negotiation A tax lawyer’s negotiation skills and experience come in handy when negotiating with the IRS to resolve your debt. A tax lawyer can negotiate a manageable tax resolution since they have the experience and negotiation skills necessary to deal with the IRS.
Not Intimidated Most people are intimidated by the IRS and the IRS knows this. On the other hand, tax lawyers are not intimidated by the IRS because they know what the IRS can and cannot do. Competent tax attorneys will not back down in their negotiations with the IRS until they have done the best they can for their clients.
