You may have heard on the radio, TV, and online that you can settle your tax bill for less than what you owe. But are these claims valid? And can you really settle your tax debt without hurting yourself in the long run?
Some of these national tax resolution firms you hear advertising offer minimal service. Just look at their Google and Yelp Reviews. So it’s important to know who to trust and get educated on your options to resolve your tax problem.
As a local expert Tax Resolution Firm serving South Texas, we encourage all readers facing a tax problem to contact us for a free consultation.
The truth is that though it’s often harder than they claim to settle for less than you owe the IRS, it is possible, and you must first learn if you qualify for the program. This is called an “offer in compromise,” but settling is not necessarily a bad thing.
An Offer in Compromise
An “offer in compromise” is a negotiated settlement between the taxpayer and the IRS that is intended to help taxpayers who owe more than they can pay. In many cases, you can settle your entire tax bill for a fraction of what you owe if you qualify. However, you can only get one if you genuinely can’t afford to pay back taxes or if doing so would cause extreme hardship. This can apply, for example, if you have become disabled.
You have to be current on all legally required income tax returns and be current on any estimated tax payments if you are self-employed and can not file for bankruptcy.
The IRS would rather take an offer in compromise than send you to collections and potentially get less money. Taking an offer in compromise will NOT affect your credit score. Having your offer in compromise accepted is a far better financial decision in the long run.
However, working out what offer to make on your own and learning the whole process can be challenging. That’s like representing yourself in a court of law without a lawyer. Not smart. A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay. A tax resolution specialist will also be a licensed CPA, Enrolled Agent, or an Attorney.
One of the great things about working with a qualified local tax resolution firm is that you get protection from the overbearing IRS, letting you sleep better at night knowing you’re on your way towards permanent tax resolution. In addition, they can head off any impending garnishments of your paycheck or levies on your bank account.
Settling with the IRS is a good thing.
Settling with the IRS is often the best answer to dealing with your back tax bill and moving on with your life.
If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem permanently.