Paying all the taxes you owe can be challenging when facing financial problems. Failing to remit the entire amount may then lead to the accumulation of penalties and interest. The IRS can also garnish your wages or freeze your assets to prompt you to pay.
Luckily, you can avoid such consequences and repay your debt using a tax settlement. Here, we help you understand how this works and discuss ways to determine eligibility. We also highlight the benefits of tax settlement and explain why it is vital to work with an expert from Tax Industry.
How Does a Tax Settlement Work?
A tax settlement allows you to negotiate favorable debt relief terms. Depending on the amount you owe, the IRS may accept an amount less than the total debt. They can also request installment payments over a specified duration.
Since the qualification requirements of each tax settlement option differ, it is always crucial to determine if you qualify before contacting the IRS.
Once you pick the debt relief program you want to apply to, submit all needed documents alongside your request. You should also send an application fee, which will depend on the chosen tax settlement option.
After receiving your application, the IRS will check if you qualify and provide feedback. They may then send a settlement offer, including all terms of the agreement and a payment schedule.
Benefits of a Tax Settlement
One significant benefit of tax settlement is that it allows you to prevent costly repercussions. Once you qualify, the IRS will freeze fines and penalties then stop collection efforts. They may also lift a tax lien or discharge it, allowing you to sell properties.
Another benefit of tax settlement is that it provides lenient payment terms. Instead of struggling to clear the amount with one deposit, it is possible to repay over several years or months.
For example, if you qualify for an installment agreement, the IRS will give you 72 months to clear the debt. Such favorable terms allow you to budget for the required monthly payments and avoid financial straining.
Who Is Eligible for a Tax Settlement?
The IRS has requirements to determine if applicants qualify for a tax settlement offer. While these will differ based on the relief program you select, some aspects are common.
First, you should be able to show that repaying your debt in full will cause financial challenges. Besides, you must file all past tax returns before submitting your application.
Another qualification requirement is that your debt must be within the maximum limit of the selected relief program. For example, when applying for a Fresh Start program, the amount you owe, including penalties, must be less than $50,000.
Since determining eligibility for tax settlement can be challenging, it is advisable to consult a relief expert. With their guidance, you can identify the most suitable program based on your debt and financial situation.
Tax Settlement Services Offered by Tax Industry
Tax Industry provides a wide range of settlement services to help you deal with debt. For example, we have attorneys who can negotiate with the IRS on your behalf or stop a wage garnishment. We also offer tax debt relief services where our liability experts assess your situation and eligibility for various settlement options.
More services you can get at Tax Industry are:
- A federal tax lien release
- Filing back taxes
- Audit representation
Working with Tax Industry liability experts is the best way to increase the chances of qualifying for a settlement. Since they understand the requirements for each relief program, they can ensure you provide the needed documentation. They may also help you avoid issues that affect your eligibility for various settlement programs.
Contact Tax Industry to Apply for an IRS Tax Settlement
Tax Industry provides you with all the skills and expertise needed when negotiating with the IRS. With our guidance, you can apply for programs like installment agreement, offer in compromise, or penalty abatement. If you are looking for reliable tax debt relief services, contact us today to consult our experts.
- FinishLine Tax Solutions is a full-service, fully accredited tax resolution firm in Houston, TX, assisting companies and individuals nationwide in resolving tax problems with the IRS. We specialize in areas of back taxes such as IRS wage garnishments, IRS bank levies, and unfiled tax returns. Our team of experts comprised of licensed Enrolled Agents, CPAs, & IRS Tax Attorneys can assist you with IRS Audit Representation and Tax Planning. We are one of the leading tax resolution firms in the nation and your go-to tax relief firm that can take you to the Finish Line. Call us today to learn more about our tax relief process.
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