Tax liabilities don’t have to be debilitating. Though we understand that it might seem like that at times. Finding the right support and tax liabilities settlement services can help you through the process.
What is IRS tax liabilities settlement?
IRS liabilities settlement does not have to be a complicated matter. Simply put, IRS tax liabilities settlement is an arrangement between the taxpayer and the IRS. In some instances, this means the taxpayer is allowed a lower tax liability. In others, it builds time into the payback schedule.
There is no such thing as “wiping the slate clean” so to speak. However, settling liabilities with the IRS in this way can be very advantageous. For one thing, it can reduce your tax liability or give you more time, making it easier for you to tackle. For another, an IRS back taxes settlement puts you back in control of your payments.
As a tax settlement firm, we also understand that no two tax liabilities problems are the same. There are all kinds of financial scenarios that taxpayers find themselves in. And because of this, there is not merely one approach to settling IRS tax liabilities. Remember, you have options.
What are the types of tax liabilities settlement?
The tax liabilities settlement process is simpler than most people think. It’s a matter of submitting the right forms and documents to the IRS. And yes, it’s true that there are many forms to navigate. This is why having a tax liabilities service on your side is beneficial.
We can make sure you always have the necessary forms in the right order while meeting appropriate deadlines. But approval of these forms and processes 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 liabilities settlement options:
- Currently Non-Collectible (putting off your tax liabilities until your financial situation stabilizes)
- Installment Agreement (paying off your tax liabilities in reasonable installments over a set period)
- Offer in Compromise (paying a considerably lower amount than your initial tax liabilities)
- Penalty Abatement (removing all penalties and late fees from your total tax liabilities)
You can see how some of these might be more appealing to you than others. But all in all, you can see how each of these IRS liabilities settlement solutions can be beneficial. And speaking of benefits, let’s take a look at how benefits more specifically come into play.
What are the benefits of tax liabilities settlement?
There are some details to be aware of when it comes to tax liabilities settlement. For instance, the IRS automatically freezes your penalties and interest once you get approved for a tax liabilities settlement. This in and of itself is incredibly helpful to your process. This isn’t the only benefit to be aware of, though.
A tax liabilities settlement also helps you avoid liens, asset seizures, and wage garnishments. It also greatly reduces how much you need to pay the IRS. Just think about the fact that you’ll be paying a considerably lower amount of money! This is because you’ll no longer be subject to penalties and late fees.
To be clear, tax liabilities settlement comes down to a restructuring of your tax burden. Remember, you can’t wipe it away, but you can make it manageable. A manageable tax is an opportunity to correct your financial path forward.
Who qualifies for tax liabilities settlement?
The IRS tax liabilities 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 liabilities. And remember, this is because of your financial situation, not because of negligence.
If the IRS can argue that you have sufficient income to pay off your tax liabilities, the settlement will be rejected. But as mentioned previously, this doesn’t mean you are out of options. The agency might be open to accepting payment in installments until you pay off the liabilities.
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.)
Again, these options might seem involved and maybe even confusing. But they don’t have to be. Especially if you have the right liabilities settlement tax team in your corner. Let our tax settlement experts present a compelling case on your behalf.
That’s right, we can communicate with the IRS on your behalf. Many taxpayers prefer this, as we specialize in all aspects of tax liabilities settlement. Why not let our tax liabilities specialists take the reins from here?
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 liabilities settlement professionals about the tax issues that you need to resolve. We have a dedicated team of IRS enrolled agents, CPAs, and tax attorneys. Each of them will work together to address the situation as quickly and simply as possible.
Let us streamline your tax liability to a manageable place so you can get on with your life.
