A tax settlement is an agreement that is acceptable to the IRS or the taxing authorities of the state that lets a taxpayer complete an outstanding tax debt for less than what they originally owed. These authorities allow for this type of tax settlement when there are extenuating circumstances that would stop the taxpayer from being able to pay the full debt. While it may not make sense to go for a tax settlement in every situation, there are people who find that the tax authorities are willing to work with the individual to see if they are eligible for a tax settlement. The reasons why they would be willing to work with someone are generally based on the circumstances of the taxpayer and the current tax regulations.
The primary factor that the IRS looks at when deciding whether a taxpayer qualifies for a tax settlement is their financial situation. If the taxpayer is suffering from financial hardship then it is likely that the IRS will decide that a tax settlement is an option to move forward with. On the other hand, if the IRS or tax authority should decide that the taxpayer does have the income to pay off the balance over time and just not in its large sum then the tax settlement request could be rejected and the IRS will offer to accept monthly payments of a fixed amount until the entire debt is paid off.
The main two benefits of trying to negotiate a tax settlement are being able to pay less now and avoiding liens/garnishments. The first being the most obvious and beneficial is paying a lot less money than they had originally been required to do all at once. If we assume that the situation of the applicant meets the requirements of the tax authority then they may quickly turn around and decide how much will be paid and when it is due. Both parties mutually agree on this amount and once it has been paid then the account is considered settled-in-full, and the taxpayer does not have to pay any late fees or other penalties that normally would happen. The other benefit of having a tax settlement is that the taxpayer will not have any placement of tax liens on their business or home. They will also not have a bank levy on one or more of their accounts. Finally, they won’t have any sort of wage garnishment placed on their paycheck.
Here at Tax Resolution Attorney Gwin, we can help you with your tax settlement between the IRS or any state taxing authority. We have knowledgeable attorneys who are not only experts in tax settlement but have won many cases again in the IRS. We take that experience and apply it to every customer and help make the whole process easier and less stressful. We have the skills, resources, and experts to help you with your tax settlement and feel confident during the entire experience. Give us a call today (407) 704-7152.