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 valid? And can you pay your tax debt without hurting yourself in the long run?
Some of these national tax resolution firms you hear advertising offer minimal service; look at their Google and Yelp Reviews. So, knowing who to trust and getting educated on your options to resolve your tax problem is essential.
As a local expert Tax Resolution Firm serving Port Saint Lucie and Fort Pierce, Florida, we encourage all readers facing a tax problem to contact us for a free consultation.
The truth is that though it's often more complex than they claim to settle for less than you owe the IRS, it is possible, and you must first learn if you qualify for the program. This is called an "offer in compromise," but settling is not necessarily bad. An "offer in compromise" is a negotiated settlement between the taxpayer and the IRS intended to help taxpayers who owe more than they can pay. You can often settle your entire tax bill for a fraction of what you owe if you qualify. You can only get one if you genuinely can't afford to pay back taxes or if doing so would cause extreme hardship. This can apply, for example, if you have become disabled. You must be current on all legally required income tax returns and current on any estimated tax payments if you are self-employed and cannot file for bankruptcy.
The IRS would instead 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. Accepting your offer in compromise is a far better financial decision in the long run. However, 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 ideal. A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay. A tax resolution specialist will also be a licensed CPA, Enrolled Agent, or Attorney, which I happen to be all three.
One of the great things about working with a qualified local tax resolution firm is getting 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 paycheck garnishments 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 professional who knows how to navigate the IRS maze, reach out to our firm. We'll schedule a no-obligation confidential consultation to permanently explain your options to resolve your tax problem. Free Consultation