Tax Settlement

Tax Settlement

Tax settlement is the process of negotiating with the IRS to settle your tax debts for less than what you owe. This will require you to make a lump sum or short term payment plan offer to pay off the IRS for less than you owe. If you owe the IRS more than you can afford to pay, this could be the plan for you. Basically, settling your tax debt allows you to pay a fraction of your total tax debt. Once the approved settlement offer is paid, its considered settled in full, and you will no longer be responsible for the tax liability. As a result you can ultimately save thousands of dollars in taxes, penalties and interest.

Do you qualify for a tax settlement?

If you are struggling to pay your tax debt and find yourself in financial hardship, you may be eligible to settle your tax debt.

There are many factors that the IRS considers when accepting a settlement. The most important one will be your financial situation. If you are facing a financial hardship and you are unable to pay your tax debt in full, it’s a very good possibility that the IRS will be willing to settle.

On the other hand, if the IRS determines that you are able to pay your tax debt in full over a specified time; your settlement offer may be denied. Alternatively, the IRS will offer to determine an acceptable monthly payment plan on the tax debt balance.