IRS tax debt can be difficult to deal with on your own. The IRS is a powerful organization, and they have a lot of tools at their disposal to collect the money you owe them. They can garnish your wages, put a lien on your property, or even seize your assets. Thankfully, in 2011, the IRS rolled out the Fresh Start Program that allows late-paying Americans a path towards paying off tax debts. One way to eliminate tax debt is by negotiating back taxes with the IRS.
How to Negotiate Tax Debt with the IRS
The first step in negotiating with the IRS is to figure out how much you actually owe. You can do this by requesting a statement of account from the IRS. Once you know how much you owe, you can start to look at your options for paying it off. If you’re unable to pay the full amount owed, you can try to negotiate a payment plan with the IRS. The IRS has a variety of payment plans available, and they may be willing to work with you to find a plan that fits your budget.
Negotiate a Settlement
If you’re unable to pay the IRS in full, you might also be able to negotiate a settlement. A settlement is an agreement between you and the IRS that allows you to pay less than the full amount you owe. The IRS may be willing to settle for less if they believe it’s the best way to collect the money you owe them.
Installment Agreement
If you’re struggling with tax debt, you can try to negotiate an installment agreement with the IRS. An installment agreement allows you to make monthly payments toward your tax debt. The IRS has a variety of installment plans available, and they may be willing to work with you to find a plan that works for you.
Offer in Compromise
You might also be able to negotiate an offer in compromise. An offer in compromise is an agreement between you and the IRS that allows you to pay less than the full amount you owe. The IRS may be willing to accept an offer in compromise if you meet the requirements. You will likely qualify for an offer in compromise if you prove that paying off your tax debt will cause financial hardship or would be unfair.
If you’re facing IRS tax debt, it’s important to understand your options. You may be able to negotiate a payment plan or settlement with the IRS that fits your budget and allows you to pay off your debt. A qualified tax attorney can help you navigate the negotiation process and find the best solution to your overwhelming tax debt.
Get in touch with our Tampa tax debt relief attorney today at (813) 229-7100 to schedule a consultation!
