A tax settlement is a formal arrangement between a taxpayer and a tax authority to settle tax debt for less than the full amount due. To reach a tax settlement, you must meet several requirements and successfully negotiate with the IRS or state tax authority.
Our Tax Settlement Services
- Resolving Bank Levies
- Removing Tax Liens
- Tax Penalties
- Unfiled Tax Returns
- Wage Garnishment
- Passport Revocation
- Tax Liability Resolution
- Individual & Business Tax Relief
- Federal Back Tax Settlement
- State Back Tax Settlement
Who Qualifies for Tax Settlement?
- Tax settlement for disabled adults, which is available when the disability affects earning capacity or creates additional financial burdens.
- Individuals experiencing major life changes or unexpected financial hardship.
- Job loss or significant income reduction
- Medical emergencies or serious illnesses and diseases
- Divorce
- Death of a spouse or family member
- Natural disaster victims
- Seniors on a fixed income.
The IRS evaluates each case individually and considers factors such as current income and expenses, medical conditions, disabilities, and compliance history with tax obligations. If eligible, a taxpayer can significantly reduce their tax liability.
IRS Tax Settlement Program
Offer in Compromise (OIC)
This tax settlement program is typically reserved for taxpayers in difficult financial situations who lack the resources to pay off their debt in full.
Tax Settlement Alternatives
Currently Not Collectible (CNC)
First-Time Penalty Abatement
Eligible penalties for first-time abatement include:
- Failure to File – when you owe taxes and your income tax return was not filed by the deadline.
- Failure to Pay – when you don’t pay your tax bill by the due date.
- Failure to Deposit – for employers when they don’t make employment tax deposits on time, in the right amount, or in the right way.
In order to qualify for First Time Abatement, you must have a good history of tax compliance. You cannot have received other tax penalties in the last three years, and if you did, it must have been removed for an acceptable reason other than First Time Abatement. Next, you cannot have unfiled tax returns for at least three years before receiving the penalty.
Even if you haven’t fully paid the tax on your return, you can still request a First Time Penalty Abatement. However, you should be aware that the Failure to Pay penalty will continue to accrue until your balance owed is paid in full.
Partial Payment Installment Agreement (PPIA)
Other types of installment agreements include the Guaranteed Installment Agreement (GIA) and the Streamlined Installment Agreement (SIA).
How To Settle Tax Debt With the IRS
The process involves choosing the most appropriate settlement option for your situation, submitting a complete application with supporting documentation, and negotiating effectively with the IRS.
However, rather than facing this complex process alone, our trusted tax professionals can advocate directly with the IRS on your behalf. As one of the top tax settlement firms, our experts handle all documentation and communications with IRS agents – which can increase your chances of achieving the best possible settlement outcome.
Common Mistakes to Avoid
- Missing application deadlines
- Incomplete financial documentation
- Ignoring IRS communications
- Failing to maintain compliance with tax filings during the process
Qualify today for a Fresh Start.
Learn how easy it is to resolve your tax problems.
