3 Ways To Settle Irs Tax Debt For Less

by Chuck Wilson - Date: 2010-08-06 - Word Count: 496 Share This!

You can settle IRS tax debt for less if you know your options. There are several ways that you can save money, even if you believe that the IRS is going to come after you for everything you own. It would be in your best interest to at least attempt to settle your debt for less. What do you have to lose? If you can get away with paying more than what you owe, it will work out in your financial favor in the long run.

Here are three ways to settle IRS tax debt for less:

1. Offer in compromise. This is the method that most people think about when it comes to settling tax debt for less. With this, you are offering to pay the IRS less than what you owe. In turn, you are hoping that they agree. It is important to remember that the IRS only accepts an offer if the taxpayer is under extreme conditions. Year after year, the IRS accepts roughly 10 to 15 percent of the offers that they receive.

You have to make an offer to the IRS that is believed to be equal or more to what they could collect from you. If you don't, they will simply come after you for the money through a variety of collection methods.

2. Partial payment installment agreement. With this, you are entering an agreement in which you will pay back what you owe over an extended period of time. When all said and done, you will end up paying less than your overall liability. This method is usually for those who cannot make the minimum payment required by a traditional installment agreement.

3. Penalty abatement. Do you owe the IRS a lot of money in penalties, along with your balance? While penalty abatement does not get rid of the base amount that is owed, you can eliminate penalties that have added up over the months. Out of all your options, this is the easiest way to settle your taxes for less than what is owed. The IRS is well aware that there are times that penalties should be wiped out. This is why they are open to the penalty abatement process.

Are you more confused than ever? Now that you see your options, you may be worried about choosing the right one. Even though you can settle IRS tax debt for less through all three of the above, you need to focus on one and then move forward. If you do not know where to start, it is important that you touch base with a tax professional. They can explain the pros and cons of each method, while also giving you a better idea of which one (if any) you qualify for.

These are the three ways that you can settle IRS tax debt for less. Consider an offer in compromise, partial payment installment agreement, and penalty abatement. Hopefully one of them will allow you to pay the IRS less than what you actually owe them.

Related Tags: tax debt, installment agreement, offer in compromise, tax debt relief, irs debt, penalty abatement

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.

Recent articles in this category:

Most viewed articles in this category: