Tax Settlement - Options to Choose From

by Steve Smith Buy Qualified Leads - Live Transfers - Closings When a tax payer is unable to pay his taxes and struggling with long time tax debts having valid reasons for tax abating, then the person can choose to opt for tax settlement. The IRS offers the tax payers several settlement options to pay their owed taxes. However not everyone who has tax debts are eligible for settlement options. There are certain criteria that have to be considered before they are eligible for this option. The primary criterion will be the financial status of the tax payer and based on this factor, the IRS determines if the person is eligible for the settlement option. Though, in most cases, the tax payer has to pay the owed tax in full, there are certain exceptions for special circumstances.

There are several options to settle for a lesser amount than the actual amount owed. The payer can choose to give an offer in compromise. It is most common of the settlement methods also the hardest to qualify for. The IRS has to be convinced that the amount offered by the tax payer is more than what they will be able get out of the payer if they opt for forced collection methods. There is an option for paying in installments, the amount paid will be lesser than the total amount owed and is only granted for those who cannot meet minimum payment requirements. Penalty abatement is also possible. In this option the penalties that are inflicted on the base amount is eliminated. Nonetheless the tax payer has to pay the original base amount that is owed. One should carefully assess the tax settlement option before choosing it so that there are no future hardships.

The truth is that the tax code is very complex. Over the decades the US tax law has become bloated with various loopholes so that legislators can appease their constituents. Of course they also need to figure out how to pay for the roads and various services that we enjoy so at some point people do have to pay their taxes. When revenue or income suddenly drops there can be an issue where we don't have enough savings to pay all the taxes due.
Reasons we fall behind on taxes resulting in a Tax Settlement:

1. Unpaid Payroll/Employment Taxes
2. Unknown Investment Taxes
3. Unexpected Property Tax Changes

3 Ways to get a Tax Settlement for less than you Owe

1. Offer in Compromise - This process is the most common method for settling your tax debt with the IRS. Here you make an offer to pay a portion of the tax debt that prevents you from falling into economic hardship. The key here is to make an initial offer that convinces the IRS they will be getting more from you than if they took their traditional approach. This is the method where you can save the most money and is what people talk about when they pay pennies on the dollar.
2. Partial Payment Installment Agreement - This method of tax repayment allows the taxpayer to make payments over a specified amount of time for less than they would have to pay with the normal installment agreement. Once again it is an option to prevent the tax payer from falling into economic hardship.
3. Penalty Abatement - This method is focused on the penalties that the IRS imposes on tax payers who fall behind to try and scare them into paying sooner. This is like asking your back to drop overdraft or ATM fees. It is probably the easiest way to save on repaying the taxes; however it does nothing to reduce the base amount of taxes owed.

There are hundreds of companies representing themselves as experts in tax resolution many of them are only taking advantage of the 25 million Americans who owe back taxes to the IRS. There are far less companies that are fully certified and accredited and even less that have the experience and expertise.

Choose one the best company for tax settlement live transfers leads in USA.

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Created on May 23rd 2019 08:01. Viewed 255 times.

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