Any IRS tax settlement agreement is a much better option than trying to avoid your tax liability altogether. But, to qualify for negotiating an IRS tax settlement, the IRS requires you to be current with tax filings and have no missing returns. Working to reach a settlement agreement with the Internal Revenue Service for repayment of tax debt requires a basic knowledge as to how the system works. If you already have an unpaid tax debt or unfiled tax returns, taking timely actions and seeking the right professional advice can be very important to your financial future. Always avoid IRS forced collection techniques such as a property lien, bank account garnishment or tax levy. Call us at (415) 668-3130 to let our enrolled agent explain your tax settlement options and start reducing your unpaid tax debt. After all, finding successful solutions to IRS tax settlement problems is what we do best.
Don’t wait until it’s too late to protect yourself and your money from a tax lien, bank levy, or administrative wage garnishment. Listed below are common options that provide IRS tax debt relief:
- File Back Taxes – The IRS will not negotiate installment agreements or consider other tax relief options unless you have submitted all unfiled tax returns. Remember, it is never a good idea to have the Internal Revenue Service file your tax returns in your behalf.
- Pay Tax Debt in Full – If you have the financial resources to pay in cash or borrow the amount owed the IRS, this may be your best option for an IRS tax settlement. It is unlikely the Internal Revenue Service will accept an offer for an optional tax settlement as long as you have the money to pay your tax debt.
- IRS Installment Agreement – The IRS may agree to a repayment schedule for your tax liabilities using an installment plan. There are several types of installment agreements based on the amount of the tax debt and the number of years needed to repay.
- OIC (Offers In Compromise) – In recent years, television infomercials have popularized the idea of settling tax debt for pennies on the dollar. “Offers in Compromise” are a very popular and best first option to consider. The offer amount must be slightly more than the IRS can Reasonably Expect to Recollect or (RCP – Reasonable Collection Potential). If this criteria is met, then there is a very high likely hood that the offer will be accepted.
- IRS Debt Relief – The IRS uses a formula for determining whether your tax liability is collectible or not. If your tax debt is ruled Non-Collectible, you can be released from repayment of the debt based on doubt of reasonable collection potential (RCP).
At Stern & Associates, we understand that the Internal Revenue Service intends to collect all the money due from your back taxes. We also understand that you may not have the liquid assets to pay your tax bill in full. Finding the right solution will require timely action on your part and the submission of properly completed government tax documents. If you fail to make an honest attempt to negotiate a tax settlement, the IRS may choose to turn your unpaid tax debt over to a private collection agency. It is always a good idea to be proactive when seeking IRS tax relief. Don’t be fooled by infomercials claiming to settle IRS tax debt for pennies on the dollar. Remember, based on your ability to repay (and how difficult it may be to collect the debt), the IRS will consider your Offer in Compromise (OIC) and other partial tax payment plans. If you need an IRS tax settlement agreement, give us a call (415) 668-3130 to speak directly with a qualified tax expert today.