A tax settlement refers to an arrangement that is negotiated with the IRS in order for an individual to be in good standing once it is completed. This settlement may take on a variety of forms, depending on the individual’s financial and tax circumstances, and is ultimately dependent on what the IRS and/or state taxation authorities are willing to accept in order to retire any outstanding tax debt and settle the account.
In order to reach a tax settlement with the IRS, the process of tax negotiation must occur. During this process, the individual’s current and future financial situation will be considered as well as the details of any outstanding tax debt owed to the government. A process of negotiating with the IRS and taking advantage of any applicable tax resolution programs can ultimately lead to a tax settlement agreement so that the individual is considered compliant and all collection action ceases.
Why Would The IRS Agree To A Tax Settlement?
In some cases, there are financial circumstances that make it apparent to the taxation authorities that they will not be able to recoup the full amount of tax debt owed by an individual, no matter what type of collection action is pursued. In these cases, tax agents may be willing to negotiate a settlement in order to recoup at least a portion of the tax debt owed or to set up a plan where they receive the money owed over time.
Knowing what your options are in order to settle your outstanding tax obligation can be difficult at best, but our experienced tax resolution team can recommend the best options for you in order to reach an agreeable tax settlement. Although this process can be tackled by an individual on their own, the advice, guidance and experience offered by an experienced tax resolution specialist can result in far more favorable outcomes and can also lessen the burden of effort it takes to deal with the IRS, which can be a daunting and lengthy process.
What Are The Benefits Of Tax Settlement?
If the IRS deems that your situation is appropriate to enter into a tax settlement agreement, there are a number of benefits this offers, including:
- Pay less – Most tax settlements allow you to pay a considerably lower amount to settle your tax obligation than what is actually owed. Once you make payment in full on the negotiated amount, you are considered to be in good standing and no future collection action can be taken on tax obligations that are part of the settlement (not including any future tax debt you may incur).
- Avoid penalties and fees – By settling your account, you can stop the assessment of penalties, fees and interest that are incurred on your outstanding tax balance. In some cases, existing penalties, fees and interest may be waived or reduced if you meet the terms of the settlement agreement.
- Spread out payments – If you don’t have the money to settle your outstanding debt (full or negotiated amount) in one lump sum, you may be able to set up an installment payment plan so you can pay what you’re able to over time, as long as you are paid in full as per the terms of the settlement agreement by a specific date in the future.
- Avoid wage garnishment, bank levies and liens – When you have outstanding tax debt, the government has the ability to garnish your wages, set up a bank levy or place a tax lien on your home, property or business. By entering into a tax settlement agreement, you can avoid or remove wage garnishments, bank levies or liens.
- Be in good standing – You may be able to bring yourself into compliance with the government through any of these methods, stopping further action by the IRS against you.
Is Everyone Eligible For A Tax Settlement?
Although the IRS does offer tax settlement options for some taxpayers that struggle to meet their tax obligations, only a small percentage of people may qualify. The best way to determine if you are eligible for a tax settlement, and your best chance of obtaining the most favorable tax settlement, are by utilizing a company that specializes in tax negotiation and tax settlement, such as People’s Tax Relief. We have over five decades of combined experience in negotiating and settling tax obligations with the government and have spent thousands of hours working on the behalf of clients to reduce tax obligations and bring them into good standing with the IRS.
Why People’s Tax Relief?
Obtaining favorable tax settlements with the IRS and state taxation authorities is our specialty. We utilize a simple 3-step process that will result in your being compliant with the IRS and will pursue the best possible tax settlement option based on your past and current financial situation. Our goal is to better our clients’ tax situations by not only resolving past and present tax issues, but by setting them up for the future so they don’t have recurring tax issues moving forward. We do this with sound tax resolution and negotiation principles based on years of experience and a focus on customer service.
Ready For Us To Resolve Your Tax Issues? Contact Us!
Call People’s Tax Relief for a free, no-obligation tax consultation at 866-603-6938 or fill out the form on the side of this page and one of our experienced tax settlement specialists will contact you. During this consultation, we’ll analyze your tax situation, will advise you on whether you may be eligible for a tax settlement agreement and will recommend the best tax settlement strategy, if eligible, in order to bring you in compliance with the IRS and state taxation authorities.