IRS Tax Settlement 

Dealing with IRS tax debt may be daunting, but an IRS tax settlement might be the option that you have been seeking. Receiving good news from the IRS once you are late with payments is rare. However, there are IRS tax settlement options that can get you the fresh start you need to bring you tax relief. Let’s explore how we can get ahead of the problem before the penalities and interest accumulate. 

What’s a Tax Settlement? 

A tax settlement allows a taxpayer to settle a tax debt or tax liability for less than the amount owed. Completing a tax debt settlement is as simple as submitting the right forms to the IRS. The IRS looks at extenuating circumstances, the ability of the taxpayer to pay the amount owed, and applicable tax regulations when deciding to issue a tax settlement. 

Benefits of an IRS Tax Settlement

A taxpayer has everything to gain from an IRS tax settlement. The immediate benefit is that you can possibly get away with paying much less than the actual amount owed to the IRS. The IRS is pretty up to speed when it comes to approving settlements. Not to mention this may help with wage garnishments, bank levies, tax liens, and much more just to name a few. Also, other benefits are that the IRS will freeze penalties and interest upon IRS settlement approval. This is crucial for a taxpayer because stopping the interest and penalties would prevent your total tax balance from increasing. 

Types of IRS Tax Settlements 

• Offer In Compromise (OIC)
• Currently Non-Collectible (CNC)
• Penalty Abatement (PA)
• Installment Agreement (IA) 

How Does Tax Settlement Work? 

You have two main options for receiving tax settlements. Firstly you can come to an agreement for repaying what you owe the IRS over time. Secondly, you can negotiate with the IRS for a tax balance that is less than what you owe. 

Who Is Eligible For Tax Settlement?

Before you can be the eligible first thing that you need to make sure of is that you are in compliance with the IRS. What does compliance with the IRS mean? You need to have all your tax years filed. Once you have all your tax years filed you can start to seek out different IRS programs that you can apply for. However, to qualify for these programs, you must prove to the IRS that you are in financial hardship or that paying them would put you in financial difficulty. 

Next Steps

If you have questions about the IRS Tax Settlements. Our tax relief experts can guide you through the process. Reach out to us at (866)211-4564.

To find more information on Fresh Tax Solutions, and to learn about updates on the IRS Fresh Start Program for 2022  visit our blog.