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Tax Settlements

A Tax Settlement is known as an Offer in Compromise “OIC”. The biggest benefit of an offer in compromise is it its finality.  An OIC  is a permanent solution.  The other resolutions are not permanent, the IRS can review the other resolutions at any time and make change based on new information.   

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 are knowledgeable and experienced. We take that experience and apply it to every client and help make the whole process easier and less stressful. We have the skills, resources, and knowledge to help you with your tax settlement and feel confident during the entire experience. Give us a call today (407) 704-7152.