Negotiating With IRS - Best Ways To Settle A Tax Debt

Every American out there fears the IRS, for a good reason. They can garnish your wages, seize or place a lien on your hard-earned property, and even put you in prison. This is why you need to act quickly if you get in hot water with the agency, as you can face serious consequences if you fail to pay the tax debt. 

Fortunately, there are options available even if you don’t have enough money to pay off the entire debt at once.

Continue reading to learn the answer to the old question of how to negotiate with IRS to get out of trouble with the least amount of damage possible.

Can I Negotiate My Irs Debt?

The IRS can be relentless when it comes to recovering the money you owe them. But believe it or not, you will get a lot of leeway if you’re forthcoming with your situation and are willing to work with them. 

So yes, negotiating with IRS is possible and the agents working for the agency will help you somewhat because it’s in their best interest to get paid. As a result, they may be willing to postpone the collection until you’re in a better position to fork over the greenbacks.

Postponing can work to their benefit too. Just like with other debts, the longer you wait to repay the IRS, the more you’ll need to pay due to interest charges and other fees.

How To Settle With Irs By Yourself

It’s natural to think about the question of how to settle with IRS by yourself once you learn that negotiating with IRS is an option. After all, you want to minimize your expenses, right?

This is a bit more complicated situation, as you’ll soon see.

Although you have the right to represent yourself in tax-related matters, most taxpayers seek professional help. 

Why? 

Learning how to negotiate with IRS is not simple. Since financial well-being is at stake here, many taxpayers want to ensure they reach an acceptable settlement. By working with an attorney or a tax specialist, they can significantly reduce and alleviate their debts, which is usually enough to offset the attorney fees.

In the end, hiring an attorney turns out to be the cheaper option.

What Are Your Options For Settling Tax Debts?

With an attorney guiding you through the entire process, you have various options for clearing up your tax obligations. Do note that the right solution completely depends on your circumstances, and your attorney will be able to help you find the right one.

Here are the best options for settling your debt:

1. Installment agreement

Monthly payments are the easiest way to pay off the debt without going through financial ruin. With that said, in some cases such as losing your money in fraudulent investment schemes, you can actually recover a sizable chunk of the investment fund you lost - as much as 40%.

This helps cut the amount of taxes paid in previous years, which allows you to receive a refund that will be paid out with interest.

Consult an attorney to see if this remedy can be used in your situation.

2. Partial payment installment agreement

This is one of the newest ways you can 

 with IRS. With this agreement, you can use a long-term plan to resolve the debt at a reduced amount in installments.

Here, the experience of the attorney you hire will play a key role as they can negotiate a lower monthly rate.

3. Currently not collectible

The main idea behind this program is that the IRS will agree not to collect on your debt for a set period of time. This means they will be aware you’re unable to pay your debt at the present moment and will simply leave you to catch your bearings for the time your attorney negotiates. 

The currently not collectible program is at disposal to those who successfully prove they don’t have the necessary resources at the present time. It’s quite useful if you want to stop a lien or a seizure. You can also benefit from it if the IRS denies setting up an installment agreement.

4. Offer in compromise

By negotiating with IRS on your behalf, your attorney can set up a program in which you can sort out your debts via taxation for less than you actually owe. This is available if you make a lump sum payment, allowing you to pay a small amount that will be taken as a full payment for your debt. 

In some cases, you may even receive a payment plan for a limited period so you can recompense the IRS off at a lower rate.

5. Renegotiating wage garnishments

If you owe money to the IRS, they may choose to garnish your wages. This can be tricky as the garnishment or the levy will only be released when you clear up your debt. 

Thankfully, an attorney can assist with negotiating with IRS to release or modify the garnishment while it’s in effect if you have no funds for your basic expenses.

6. Innocent spouse tax relief

If the tax problems you’re experiencing belong to your spouse, you can receive this relief. That way, you can avoid the obligation to cover the cost of a tax debt caused by your current or former spouse.

7. Filing bankruptcy

Under Chapters 7 and 13 of the US Tax Code, income tax debts can be discharged by filing for bankruptcy. Keep in mind that your debts will be discharged only in certain scenarios so you should consult an attorney before filing anything. 

Get In Touch With The Law Offices Of Mary E. King If You Need Debt Relief Services

Because negotiating with IRS is possible, you have no need to lose sleep as many forms of debt relief are available to you. 

However, having an expert on your side will certainly help and allow you to come up with the most effective and favorable solution to resolve your pesky IRS debt. 

Here at the Law Offices of Mary E. King, we helped many citizens settle their debts and recover financially in the process, and we can do the same for you. Negotiating with IRS is our bread and butter, so you can rest assured knowing that your case is in good hands.

Call 941-906-7585 or fill out our online contact form to schedule a free consultation and get out of this problem with minimal damage.

Note: 

The information in this blog post is for reference only and not legal advice. As such, you should not make legal decisions based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.