Irs Debt Settlement


by Nigel Galt - Date: 2008-08-24 - Word Count: 648 Share This!

Every year individuals and businesses alike find themselves in what feels like shark infested waters, that is, owing back taxes to the IRS. Of course if you owe a few thousand dollars and you can afford to pay them in full, then that's exactly what you should do. But what if you owe over $10,000 and can barely get by each month? It's for these people that obtaining an IRS debt settlement should be a goal. The first thing you need to do is determine whether all of your taxes have been filed. The reason for this, is that the IRS requires all your taxes to be filed prior to negotiating a tax settlement with you. You then need to start asking yourself question, such as why it is that you owe these taxes in the first place. Have you been charged penalties and interest? Did the IRS file taxes on your behalf, which caused you to owe more than you really should have? Do you have any kind of hardship that may assist with your negotiation? Have you received a Levy Notice? These are all crucial questions which when answered will let you know your options with regards to IRS debt settlement.

Do keep in mind that under the TBOR law, you have the right to have a firm represent your case to the IRS to negotiate an IRS debt settlement if you owe IRS back taxes. But what are the odds that you'll qualify, and for which program? There is no good answer to this as everyone is different. Some people may qualify for a large debt reduction program while others will not. Sometimes a formal Offer In Compromise is the best solution, if it is accepted. However often times an experienced Tax Professional can negotiate your IRS Debt over the phone with the IRS Agent and settle your tax debt for much less than you owe without having to go through the long term process of waiting for an Offer In Compromise solution.

As mentioned above, everyone has a different need and so different measures may be taken. Some of the steps required toward IRS debt settlement may consist of the following:

1. Filing a Power of Attorney
2. Taking action to stop a Wage Garnishment or Levy
3. Preparing any un-filed taxes (This can be time consuming if you have many years of un-filed taxes and have no records.)
4. Pulling a master tax record to determine exact amount owed
5. Preparing your financial worksheet and determining your monthly surplus.
6. Determining the penalties & interest charged.
7. Filing possible appeals based on TBOR legislation.
8. Filing for Penalty Abatement
9. Determining whether you qualify for Innocent Spouse, Offer In Compromise, CNC Status, Payment Plan, etc. and combinations of those options.
10. Preparing the documents and filing.
11. Negotiate with the proper Agent at the IRS that has the authority to make decisions and reduce your tax liability.
12. Follow up with all paperwork and phone calls promptly with the IRS Agents that are handling the case.

Certain filings have required IRS fees. However, you may qualify to have those fees waived. If you have experience with tax preparation, that may help you with settling your taxes because at least you'll understand the basics of taxes, although not the legalities of course. If it's all mumbo jumbo to you however, you may seriously want to consider hiring an IRS Tax Representation Firm that does this for a living. IRS debt settlement, and for that matter, resolving back taxes in general, can be a lengthy process, where one mistake could cost you everything.

IRS debt settlement is serious business. But don't make the mistake of thinking you have no options for tax relief. Also, don't fall into the trap that your only option is an Offer In Compromise. That is not true for most people. There are numerous options and combinations of options available, but again you need to do your homework.

Related Tags: back taxes, offer in compromise, irs debt, tax relief, irs relief, irs debt settlement, irs help, settle tax debt, settle irs debt, reduce tax debt

Nigel Galt is a partner in Atlas Tax Solutions, the premiere tax resolution firm. With expert CPA's, Attorneys and Enrolled Agents on staff, we assist with wide ranging needs, from tax preparation, to submitting offers in compromise. If you owe more than $10,000 in back taxes, or are currently having your wages garnished or have received a lien, then apply online at www.BackTaxDefense.com for immediate assistance or call toll free at 1-866-892-5036.

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