It’s possible to settle tax liabilities in a number of ways. The
various methods differ in how they affect the tax balance due and the
payment plan, but there’s a lot of flexibility in how both are handled.
Skillful negotiation with the IRS can lead to resolution of most tax
According to Your Terms
When you need to settle tax liabilities, it means the amount of tax
due cannot be paid at your current earnings level. A tax liability can
be the sum of more than just the income taxes you owe. It includes the
tax, penalties, and interest.
Once the tax liability has been established, the IRS begins
collection proceedings. This collection process can be brutal as the
horror stories people tell have proven. The IRS can seize, levy, lien
and harass all they want until someone points out there are remedies
for unpaid taxes.
That’s where a tax negotiator can be a blessing. The IRS has the
right to forcibly collect overdue taxes, but their methods of
collection are merciless. It’s possible to actually get further and
further behind even while making payments.
At some point, you have to admit the situation looks hopeless unless
the taxes are reduced or the IRS collection process lightened. A tax
negotiator can help you settle tax liabilities through one of a number
- Releasing wage and bank levies
- Correcting assessments with errors
- Submitting an Offer In Compromise
- Establishing an installment payment plan
- Filing an Injured Spouse form
This is just a brief list of ways to settle tax liabilities. There
are others including negotiating a lower debt amount and then paying
off the balance due, or getting the tax amount identified as
Setting Early Terms
Of course, it’s much easier and quicker to settle tax liabilities if
you negotiate payment before the collection process gets to the point
of levies and liens. In other words, it’s easier to prevent a lien than
it is to get a lien removed. A tax negotiator can intervene in the
collection process at every stage from issuing computerized notices to
filing liens and levies.
The earlier you are able to come to an agreement with the IRS on
payment of tax balance due, the better off you will be. Tax negotiation
usually involves obtaining reductions in penalties and interest and
even the tax that is due. So the sooner you negotiate, the easier it is
for the IRS to negotiate from their side also.
When you need to settle tax liabilities, don’t hesitate to get
professional assistance. Believing you can handle it alone can get you
into more trouble. The power of the IRS is unlimited and you want to be
sure you get the best agreement possible.