Tax Debt Settlement
The IRS might seem unforgiving about tax debts. However, with the help of tax debt settlement professionals, you can settle debts for less than what you initially owed. They’ll help you choose the right tax relief option and prepare accurate documentation to make the IRS agree with your proposed settlement.
Innovative Tax Relief is a trusted provider of IRS tax debt settlement solutions. We have a team of IRS agents, accountants, and attorneys who can negotiate with the agency on your behalf to make manageable payments until you settle your tax debt.
What are the types of tax debt settlement?
The tax debt settlement process is simpler than most people think. It’s a matter of submitting the right forms and documents to the IRS. Approval is another matter entirely, though. You have to choose the right type of settlement and be able to prove that you qualify.
Here’s a rundown of IRS tax debt settlement options:
- Currently Non-Collectible (putting off your tax debt until your financial situation stabilizes)
- Installment Agreement (paying off your tax debt in reasonable installments over a set period)
- Offer in Compromise (paying a considerably lower amount than your initial tax debt)
- Penalty Abatement (removing all penalties and late fees from your total tax liabilities)
What are the benefits of tax debt settlement?
The IRS automatically freezes your penalties and interest once you get approved for a tax debt settlement. This isn’t the only thing you can get out of it, though.
A tax debt settlement helps you avoid liens, asset seizures, and wage garnishments. It also greatly reduces how much you need to pay the IRS. You’ll be paying a considerably lower amount of money because you’ll no longer be subject to penalties and late fees.
Who qualifies for tax debt settlement?
The IRS tax debt settlement program is open to all taxpayers. This isn’t a guarantee that you will qualify for a settlement, though. You should be able to prove that you’re struggling to pay tax debts because of your financial situation, not because of negligence.
If the IRS can argue that you have sufficient income to pay off your tax debt on time, the settlement will be rejected. However, the agency might be open to accepting payment in installments until you pay off the debt.
Alternatively, you could use these reasons for penalty abatement:
- Administrative waiver (first-time abatement or hardship failure to pay your penalty relief)
- Appeals – hazards of litigation (a settlement with the IRS that removes accuracy penalty)
- Statutory exception (a type of relief granted to those in a disaster area or a combat zone)
- Reasonable cause (disasters, honest errors, long-term illnesses, loss of records, etc.)
Let our tax settlement experts present a compelling case on your behalf.
Request a free tax settlement consultation.
Innovative Tax Relief is a full-service tax resolution company. As an IRS Enrolled Agent, we are licensed to practice throughout the United States. We can help you with tax settlement regardless of your current location.
Talk to one of our tax debt settlement professionals about the tax issues that you need to resolve. Our IRS enrolled agents, CPAs, and tax attorneys will work together to address the situation in the quickest and simplest way possible.
Schedule a free no-obligation consultation today.
