Can I do an IRS Tax Settlement?
One of the most frequently asked questions that our attorneys hear from Internal Revenue Service clients is whether they can settle their tax liability for an amount less than they owe for taxes, penalties and interest. The answer is not simple. In order to qualify for an IRS Tax Settlement, a taxpayer must fit into one of several options for IRS Tax Relief. Generally the options to settle the debt for less than a taxpayer owes are as follows (click on the heading for more information):
Offer in Compromise
An Offer in Compromise or OIC is the most frequently used option to obtain an IRS Tax Settlement.
One of the grounds for an IRS Tax Settlement through an OIC is if a taxpayer is simply unable to pay the full amount they owe. They must prove to the IRS that it is in the best interest of the government to accept a lower amount. The amount owed doesn’t matter. What matters is how much the taxpayer can afford to pay to settle their taxes.
The second ground for an IRS Tax Resolution through an Offer in Compromise is Doubt as to Liability. This means that there is a question as to whether the taxpayer actually owes the amount the IRS Claims they owe.
For more detailed information on Offers in Compromise and how they are used as an IRS Tax Settlement, Click Here
In most Tax Problem Resolution Matters, penalties constitute a huge percentage of the amount owed. There is a means of doing an IRS Tax Settlement through penalty abatement. If there is reasonable cause to remove the penalties, the IRS can do so. In order to obtain this type of IRS Tax Settlement, a request for Penalty Abatement is filed with the IRS.
The IRS does not just do a Penalty Tax Settlement for any reason, however. The taxpayer must have reasonable grounds for the relief.
For more detailed information on Penalty Abatement and how it may be used as an IRS Tax Settlement, Click Here
A taxpayer may have taxes assessed against him that are not correct in a variety of situations. These assessments may be subject to an IRS Tax Settlement through Audit Reconsideration. Some of these are:
- By an IRS prepared tax return when a taxpayer doesn’t file returns.
- The IRS does a computer exam of a taxpayers returns and finds what they believe to be errors and issues a Notice of Deficiency
- There is a full audit of returns and additional amounts are assessed.
Many times these assessments are not correct. The taxpayer may not have provided adaquate records or may not have responded to IRS notices. There are a variety of ways in which these assessments are wrong. There is a means of obtaining an IRS Tax Settlement through Audit Reconsideration.
For more detailed information on Audit Reconsideration and how it may be used as an IRS Tax Settlement, Click Here
For a No Obligation consultation to have your IRS problems analyzed by a competent and experienced Tax Lawyer, contact us at:
1 877 TAX CREW (877 829-2739) or 208 938-8500
Or, fill out our online form and find out what we can do to assist you. Our law firm offers a No Obligation consultation to all clients, and special payment plans to those who need them.