You may have heard on the radio, TV, and online that you can settle your tax bill for less than what you owe. But are these claims true? And, can you really settle your tax debt without hurting yourself in the long run?
Some of these national tax resolution firms you hear advertising offer very little service; just look at their Google and Yelp Reviews. So it’s essential to know who to trust and get educated on what your options are to resolve your tax problem.
As a local expert Tax Resolution Law Firm serving Tucson and Southern Arizona, we encourage all readers facing a tax problem to contact us for a free planning consultation. TaxHelpAz.com .
The truth is that, although it’s often harder than they claim to settle for less than you owe the IRS, it is possible. However, you must first learn if you qualify for the “offer in compromise” program.
An “offer in compromise” is a settlement between the taxpayer and the IRS intended to help taxpayers who owe more than they can pay. You can only get an “offer in compromise” if you genuinely can’t afford to pay back taxes or if doing so would cause extreme hardship. Depending upon your financial situation, you may be able to settle your entire tax bill for a fraction of what you owe.
You must be current on all legally required income tax returns and be current on any estimated tax payments if you are self-employed. Also, you cannot file for bankruptcy.
The IRS would rather take an offer in compromise than send you to collections and potentially get less money. Taking an offer in compromise will NOT affect your credit score. Having your offer in compromise accepted is a far better financial decision in the long run.
However, determining if you qualify and working out what offer to make on your own, and learning the whole process can be challenging. That’s like representing yourself in a court of law without a lawyer. Not smart. A better answer is to find a tax lawyer specializing in IRS tax collection matters that can help you with the process to see if you qualify for an OIC and determine what you will have to pay.
One of the great things about working with a qualified local tax resolution lawyer is that you get protection from the overbearing IRS, letting you sleep better at night knowing you’re on your way towards permanent tax resolution. They can head off any impending garnishments of your paycheck or levies on your bank account.
Settling with the IRS is a good thing and is often the best answer to dealing with your back tax bill and moving on with your life.
If you want an expert tax resolution attorney who knows how to navigate the IRS maze, reach out to our firm. We’ll schedule a no-obligation confidential planning consultation to explain your options for permanently resolving your tax problem. TaxHelpAz.com/contact
