Tax Negotiation & IRS Settlement

What Is An IRS Settlement?

An IRS settlement is an arrangement which is acceptable to the IRS that allows a taxpayer to retire an outstanding tax debt for less than the original tax debt owed. The IRS sometimes allow this type of IRS settlement when extenuating circumstances exist that would prevent the taxpayer from paying the full tax debt. While not every situation is appropriate for engaging in the IRS settlement process, individuals who owe income taxes often find that the IRS must explore the individual situation to determine if an IRS settlement is possible. This is typically based on current tax regulations and the circumstances of the taxpayer.

Benefits of an IRS Settlement

There are several benefits associated with attempting to negotiate a tax settlement.

Pay Less Now – The most obvious is that the taxpayer ultimately pays a considerably lower amount of money to the IRS. Assuming that the taxpayer meets certain qualifications, an IRS settlement amount may be determined and presented within a very short period of time. Once the IRS settlement is paid based on a mutually agreement, the account is considered settled-in-full, meaning that the taxpayer is no longer subject to late fees and other types of penalties that would be incurred otherwise.

Avoid Federal Tax Liens and Wage Garnishments – Another benefit of an IRS settlement is that the taxpayer avoids the placement of federal tax liens on a home or business, a bank levy on one or more available accounts, or the implementation of a wage garnishment on his or her paycheck.
How Does An IRS Settlement Work?

The IRS will allow a taxpayer to either negotiate an IRS settlement (the IRS program is called an Offer in Compromise) for less than the income tax owed or come to an agreement on another method for the IRS to collect taxes owed over time. For either of these situations the taxpayer must meet the qualifications of one of the tax settlement programs set forth by the IRS. The taxpayer will first have to determine which type of IRS settlement they would like to apply for and then submit the appropriate forms to the IRS for review before making a decision. A taxpayer can either fill out the information themselves or they can have a designated tax professional make the filing on their behalf.



Get Happy! Settle With The IRS

Stop an IRS wage garnishment and then settle your income tax debt. Call Flat Fee Tax Service, Inc. for your free and confidential consultation and find out what your options are. The IRS Tax Attorneys at Flat Fee Tax Service inc. will protect your rights. See if you are eligible for an IRS settlement.

Typically, the negotiation of an IRS settlement remains between the individual and the IRS, and may include a third party if the taxpayer seeks professional tax settlement assistance.

In many instances, an IRS settlement calls for paying off the entire IRS settlement amount within a specified period of time. During that time frame, no late taxes or tax interest is assessed on the balance of the tax settlement. Taxpayers may choose to pay off the tax settlement amount in one lump sum. If this is not possible, the IRS will set up a schedule of payments that are within the means of the taxpayer, with the last payment coinciding with the final date attached to the IRS settlement offer. Once the IRS settlement has been reached, the taxpayer will be considered good standing with the IRS for the tax year/years that the settlement covered (unless the taxpayer defaults or doesn’t hold up to all the terms of the settlement agreement).

Who Is Eligible for an IRS Settlement?

The main factor the IRS takes into consideration when determining if the taxpayer will qualify for an IRS settlement is their financial situation. If the taxpayer is undergoing financial hardship, it’s usually a good indicator to the IRS that a settlement might be your only option.

At the same rate, should the IRS determine that the individual does have sufficient income to pay off the entire balance due over time, the tax settlement request may be rejected and instead, the IRS will offer to accept monthly payments of a certain amount until the tax debt is paid off.


What is IRS Offer In Compromise?

The Offer in Compromise is the "ultimate IRS settlement" and can be a life saving form of tax resolution for those who truly need it. On average people who settle their debt using an Offer in Compromise end up paying less than 20% of the actual amount they owed to the IRS.

Approved by Congress to aid financially struggling taxpayers, an Offer in Compromise (OIC) can be the ideal IRS settlement solution for resolving your tax problem as it can result in significant savings.

In some cases, your financial situation may make it nearly impossible for you to pay off all your tax debt, even when utilizing tax resolution over the long term via an installment plan. In such situations the IRS may be willing to accept an IRS settlement through the Offer in Compromise program and significantly lower your tax bill.

Here is how an IRS Settlement (Offer in Compromise) works:

Both you and the IRS acknowledge that there is no feasible way to pay off all your tax debt without an IRS settlement. This means that you do not have enough income to pay off your debt and do not have enough valuable assets that the IRS could seize.

You pay the IRS settlement the maximum amount that you can afford even though that amount will fall far short of the actual tax debt.

If the IRS accepts your IRS settlement, it is because the IRS knows your IRS settlement is the most it could reasonably expect to collect from you.

Once you have finished paying the agreed upon IRS settlement, your tax debt is considered “paid in full.” This is true even if the agreed upon Offer-in-Compromise is only a small, tiny percentage of what you originally owed

Getting Help with Your IRS Settlement (Offer In Compromise)

The acceptance rate on an IRS settlement is fairly low due to errors or omissions on submissions when taxpayers try and do their own IRS settlement. In order to have a better chance of approval, one should utilize professional assistance for this complex process. Our highly qualified trained and experienced staff will work very hard to see if this is the best solution for your IRS tax debt. A tax debt can be legally compromised for one of the following reasons:

Doubt as to Liability – Doubt exists that the assessed tax is correct.
Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax owed.
Effective Tax Administration – There is no doubt the tax is correct and could be collected but an exceptional circumstance exists that allows the IRS to consider a taxpayer’s IRS Settlement (OIC).
Regardless of the reason, to be eligible for an IRS settlement (Offer in Compromise), the taxpayer must demonstrate that collection of the tax would create an economic hardship or would be unfair and inequitable.

For the best chances in successfully negotiating an IRS settlement, you’ll want a tax lawyer on your side. Flat Fee Tax Service, Inc. has the best IRS help team led by tax lawyers who are highly experienced in preparing, submitting and settling Offer in Compromise cases.

By calling the Flat Fee Tax Service, Inc. IRS Settlement Help Line, we will answer any questions you may have and provide you with a better assessment of your options.



keep in touch

Flat Fee Tax Service

3200 4th Ave., Suite 208,

San Diego, CA 92103

Phone. 800-589-3078