There are many avenues for settling debt with the IRS, but they certainly don't make it easy. The longer you wait, the more you'll owe the IRS in penalties. Therefore, it's best to pursue tax negotiation services as soon as possible.  We're a team of experienced tax professionals committed to helping you get the most favorable solution for your tax situation. 

If you owe money to the IRS on the tax deadline, then they begin the collection process with a notice to pay the balance in full. They impose the Failure-to-Pay penalty immediately. Consequently, interest on the overdue tax debt begins to accrue.

The tax debt compounds as each day passes, making a payment-in-full increasingly difficult to achieve. Many taxpayers feel discouraged and disheartened as their balance grows.

The IRS offers many programs to select taxpayers who qualify for tax relief. However, their eternal objective is to obtain as much of the total, including penalties and interest, as possible from the taxpayer.

They commonly reduce debt to a total that’s fair and affordable for most taxpayers as a result of our successful negotiations.

Our tax relief professionals are skillful in these negotiations, as our acquaintance with IRS procedures is an important asset.

Several years ago, ads touting tax settlements for “pennies on the dollar” seemed to be everywhere.

What they didn’t advertise is that although these settlements are possible for a select few taxpayers who meet the strict qualifications of this particular settlement, the vast majority of delinquent taxpayers don't receive this level of relief.

Today, these bold and misleading ads are far and few between. However, options for repayment at a lower balance may be available in the right circumstances. This tax settlement program is called an Offer in Compromise. You can certainly count on our trusted tax relief services to guide you down the right path to a favorable resolution for your case.

The IRS is likely to approve an Offer in Compromise if there is “doubt as to liability,” “doubt as to collectability,” or an “effective tax administration."

Doubt as to liability specifies that the IRS acknowledges that the assessed tax amount is incorrect.

Doubt as to collectability indicates that the taxpayer is unable to pay the full debt. In addition, the taxpayer will probably be unable to do so at any time within his or her lifetime.

An approval for this reason is most common. An effective tax administration approval recognizes that the tax assessed is accurate, although collecting on it would be an injustice.

Elderly taxpayers, as well as those with disabilities are often approved for this reason.

The framing of an offer in compromise should certainly acknowledge one of these approval categories. It must also be supported with documentation that verifies the taxpayer’s claims.

Taxpayers’ negotiations with the IRS rarely result in an approval of an offer in compromise, especially without the help of a reputable tax relief professional.

It’s much more common for the IRS to approve a request for an installment agreement.

The IRS requests information regarding your income, assets, and expenses. This includes such income streams as partnerships, gambling, oil credits, rent subsidies, and agricultural subsidies.

The taxpayer or their representative completes Form 433-F with this information and then files it with the IRS. The revenue agent will then use it to determine the taxpayer’s ability to satisfy the debt.

This information is also used to help the revenue agent decide which payment arrangement he or she will demand from the taxpayer.

This may be one of the following:

Short-term installment agreement

A short-term installment agreement is for debt that totals less than $10,000. Full payment is due within 120 days because of the relatively low liability level.

Individual installment agreement

This installment agreement extends the payment term from 120 days to 72 months and is more appropriate for debt over $10,000.

Small business agreement

This installment agreement is particularly designed for small businesses with debt less than $25.000.

Undue hardship extension

This payment arrangement is only appropriate for taxpayers who are unable to afford the above payment plans without extraordinary action, such as selling a piece of property.