IRS Tax Settlement – What is a Compromise?

A taxpayer has every reason to seek an IRS tax resolution. If you owe back taxes or if you are facing criminal charges for not paying taxes, then seeking an IRS tax resolution can mean the difference between facing fines and having your case dismissed. While you may think that settling with the IRS on your own sounds appealing, the reality is that doing so without an attorney presents many serious issues. An experienced Fort Collins IRS Tax Attorney can help ensure that you get what you are owed, even if you are not in the best financial situation to pay it back. Check out to learn more about IRS tax resolution. Here are several common mistakes that taxpayers make when seeking their own IRS tax resolutions.


Not Knowing If You Qualify For an IRS Tax Settlement. If you are trying to find out whether or not you qualify for an IRS tax resolution, then it is imperative that you understand the eligibility requirements. If you are eligible for a compromise program, then you should make sure to request one. There are two ways to do this: by completing a form from the internal revenue service website, or by contacting the Internal Revenue Service at their toll-free number or by writing to them directly. If you have made a mistake when filling out one of the forms or did not send your request in on time, then you may not qualify for an IRS tax resolution.


Attempting to Get the IRS Off Your Back on Your Own. If you are trying to resolve your own taxes without an attorney, then you need to realize that there are certain things that the Internal Revenue Service requires in order to settle your tax debts. First, they must receive an estimate of your tax debts. Second, they must negotiate with each of your creditors on your behalf. Finally, if you are unable to come to an agreement with the Internal Revenue Service, then they will issue you a tax settlement and send you your tax debts in full.


Don’t Be Afraid to Ask for a Pro Bono Attorney. If you cannot afford to hire an attorney to help you with settling your taxes, then you may want to consider asking for a pro bono attorney. This tax relief option exists so you can receive your relief without spending any money on legal fees. You must fill out a form requesting a settlement; then a representative from the tax relief agency will visit your office to talk to you about your options.


You May Not Qualify For a Pro Bono Settlement. It is very important that you understand the IRS definition of a compromise on your tax debts. A compromise is when the Internal Revenue Service agrees to settle for a lower amount than what you actually owe in order to settle the debt. To qualify for a settlement, you must demonstrate that you are unable to pay the debt in full; otherwise, you will not be granted a tax settlement.


If you do not meet all of the above criteria for a settlement, then it may not be possible for you to settle. In this case, it is important that you consult an experienced professional who can advise you on your options and recommend the best course of action for your situation. To settle your taxes may seem like an easy way out, but there are many consequences to settling your liability without having enough money to pay it. If you are considering settling, have a plan in place that will ensure you don’t have any financial issues in the future. As with any new financial planning, it is always important to doubt your ability to spend and doubt the tax professionals who may be advising you on a settlement.

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