Tax Negotiation & Tax Settlement
What Is a Tax Settlement?
A tax settlement agreement allows a taxpayer to settle a debt with the IRS or state tax agency for less than the full amount owed. Tax agencies sometimes allow this type of tax settlement when extenuating circumstances exist that would prevent the taxpayer from honoring the full debt. A tax settlement with the IRS is known as an offer in compromise doubt as to collectibility. While not every situation is appropriate for engaging in a tax settlement process, individuals who owe taxes often find that tax authorities are willing to explore the individual situation to determine if a tax settlement is possible.
Benefits of an IRS Settlement
Here are some of the benefits of negotiating a tax settlement with the IRS.
- Pay Less Now – You pay less then the amount of tax originally owed. Once the balance is paid, the account is considered settled-in-full, meaning that the taxpayer is no longer subject to late fees and other types of penalties that would be incurred otherwise.
- Avoid Liens and Garnishments – When the terms fo the IRS settlment agreement are satisfied, the tax liens placed on homes, businesses, banks accounts are removed. If you have a wage garnishment it will be released.
Contact Lionsgate Tax Defenders
We have tax attorneys with master of laws degree in taxation that can help you understand the risks and benefits of the different options available and help you get out of debt without running afoul of the IRS.