Understanding the IRS Settlement Process
If you owe back taxes to the IRS, then negotiating a settlement can be a viable option. An IRS settlement is where you come to an agreement with the IRS to pay less than the full amount of what you owe. However, negotiating a settlement can be complicated, and you will need to have a good understanding of the process before you begin. Generally, settlements are only considered when all other options have been exhausted. Before even considering negotiating a settlement, you will need to ensure that all of your past tax returns have been filed and that you are up to date with your current taxes. To broaden your understanding of the subject, visit the suggested external resource. There, you’ll find extra information and new perspectives that will further enrich your reading. Resolve Debt Https://Www.Helloresolve.Com.
Providing Financial Disclosure
The IRS will want to get a clear picture of your financial situation to determine what you can reasonably afford to pay back. As such, you will need to provide them with a financial disclosure statement. A financial disclosure statement details all of your income sources, expenses, assets, and liabilities. It’s essential to be honest in your financial disclosure. The IRS will cross-check your financial disclosure statement against other information they have, such as W-2 forms and bank statements.
Offering an Appropriate Settlement Amount
When negotiating a settlement, you will need to offer an amount that is reasonable and that the IRS will accept. The amount that you offer should be more than what the IRS could potentially get through seizure or sale of your assets. The IRS will usually accept settlements that cover the full amount of what they could get through legal means within two years. This means that a settlement amount should be within 20-25% of what you owe in taxes.
Considering Different Types of Settlements
There are several types of settlements that you can discuss with the IRS, depending on your circumstances. One of the most common is an offer in compromise (OIC) where you offer to pay a portion of what you owe, and the IRS agrees to forgive the rest. Another option is to negotiate an installment agreement where you pay off your debt in a set number of payments. A final option is to appeal your case with the IRS through the Office of Appeals if you disagree with their decision concerning your payment.
Talking to a Professional
Finally, it’s crucial to consider speaking with a professional who has experience in negotiating with the IRS. A tax attorney, certified public accountant, or enrolled agent can help you navigate the complicated IRS settlement process. A professional can look out for your best interests and advise you on the best settlement options for your specific situation. It can also be useful to work with professionals who have experience with the IRS office you are working with. Different IRS offices may have different settlement negotiation processes and policies, and so you may want to work with someone who has worked with that office before. Immerse yourself further in the subject and uncover more details in this thoughtfully chosen external source. Resolve Debt Https://Www.Helloresolve.Com, investigate fresh information and viewpoints regarding the topic covered in the piece.
In conclusion, negotiating an IRS settlement can be an effective way to deal with back taxes. However, it’s essential to understand the process, provide honest financial disclosures, offer appropriate settlement amounts, consider different settlement types, and seek professional help. With the right preparation and guidance, you can negotiate a settlement that works for both you and the IRS.
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