TAX SETTLEMENT
WHAT IS A TAX SETTLEMENT?
Tax settlements are arrangements accepted by the IRS or state tax authorities even though you pay less than the original outstanding tax debt. Often, these arrangements are acceptable if extenuating circumstances are preventing you from paying the total amount.
While tax settlements are by no means guaranteed, tax authorities are generally willing to explore your situation to ascertain whether such a settlement is feasible. Their decision will depend on your situation and the current tax regulations.
HOW DOES TAX SETTLEMENT WORK?
If the IRS deems that you qualify for a tax settlement, you can start the negotiation process. You can either negotiate an agreement to reduce the amount of tax you owe or agree to pay the debt back over time.
Before the IRS grants you a tax settlement, you will need to fulfill the qualification criteria of one of their tax settlement programs. You will have to choose which program you will apply for and then submit the corresponding paperwork. The IRS will then review your application and decide as to your eligibility. You can complete the application process yourself, or your designated tax professional can file it on your behalf.
