Several Ways to Negotiate with the IRS on Tax Issues
IRS will not agree to a Settlement of Tax Debts offer that costs pennies on the dollar. The only time the IRS will settle your tax debt is when you are financially unable to make payments, and your financial situation has not improved since you filed your tax returns, said the best tax attorney Louisiana. There are several ways to negotiate with the IRS, including filing a pre-qualifying tool that lets you see if you qualify. The IRS will consider this option if your financial situation improves.
Before beginning the negotiation process, you need to determine how much you owe. If you owe a $10,000 tax bill, the IRS will consider your financial circumstances and applicable tax laws. If you underestimate your tax liability, you could end up paying more than you owe. You are better off hiring a qualified tax lawyer to help you determine the amount you owe. It will also ensure that you do not make any mistakes that may result in a less favorable settlement.
If you cannot afford to pay the full amount, you may want to seek a Settlement of Tax Debts. This method is popular among those with a large tax debt and has many advantages. While you will have to submit all of the proper documents, you will be considered in good standing with the IRS if you have a good record of not defaulting or violating terms of your agreement. The IRS will consider these factors when making a decision to issue a Settlement of a Tax Debt.
If you cannot afford to pay the full amount, you can choose an Offer in Compromise or payment plan. You will be required to pay the full amount within two years of filing for bankruptcy. If you do not pay the full amount, the IRS will not be so generous and you will have to pay the original tax debt plus penalties and accrued interest. However, if you can’t afford to pay the full amount, you should consider filing for a Currently Not Collectible status or a Non-Collectible Hardship.
When you can’t afford to pay the full amount, consider an Offer in Compromise. This is a negotiation that allows you to pay the total amount you owe while getting a reduced rate. This option will save you money while also avert the risk of a lawsuit. If you can’t pay the full amount, consider a settlement of your tax debts. This is a great way to eliminate your tax liability, said a known tax lawyer. If you’re able to, you should seek professional help with this process.
If you’re in a financial bind, you can file an Offer in Compromise to the IRS. An Offer in Compromise is an offer that allows you to pay less than you owe. An offer in a Compromise has a two-year repayment period and a maximum of $750. You must be able to pay the balance within two years or face a large fine.