Negotiating with the IRS does not have to be a terrifying ordeal. The initial thought of long wait times and filing paperwork may seem daunting at first. A knowledgeable tax professional has the tools necessary to negotiate with the IRS. You may even be able to pay far less than what you owe or have the taxes completely forgiven. A tax professional will walk you through the negotiation process with the IRS.
Part of the negotiation process is informing the IRS collectors that you are incapable of paying the full sum of your tax liability at once. They do whatever it takes to receive their money. Your assets and income may be at risk of an IRS seizure. A tax professional may prevent asset seizes and make payments easier on you. You would simply fill out the correct forms to remain compliant with the IRS. A tax professional can create a payment plan that eases you into a financially stable life.
A partial payment installment agreement is a tax liability reduction. After the IRS confirms the partial payment agreement, your monthly payment arrangement begins.
An Offer in Compromise is the best possible negotiation program. However, it is also the most difficult to get approved for. While you may negotiate with the IRS on your own, the success rate is significantly lower. If you were to receive the help of an experienced tax professional, your success rate is higher. The approval rate is already 3-5% successful. Over 90% of that is due to the thorough knowledge of a CPA or enrolled agent at a tax resolution firm.
There are a couple of scenarios that the IRS considers when they receive an Offer in Compromise. These scenarios are either IRS user error or the possibility of collection.
There are situations where you are able to pay your tax obligation but do not wish to have the tax penalties attached. As long as you provide a compelling reason, you may receive assistance.
To qualify for financial hardship status, you must fill out Form 433A–Collection Information Statement for Wage Earners and Self-Employed Individuals. You may qualify for a temporary pause on your taxes and your financial status may be re-evaluated each year. This gives you and your tax professional time to create a plan of action to reduce or lift your tax obligations.
The statute of limitations is the amount of time that the IRS has to collect your federal income taxes. Typically, the statute of limitations is ten years. Depending on specific circumstances, it can be longer. The time does not begin until the IRS has assessed your tax liability and sent you a notice. It could be several years until you receive a tax notice.
In some cases, you may wait out the statute of limitations until your taxes disappear from the system. To increase your likelihood of success, you need a tax professional to assist you. It is imperative that you maintain communication with your tax professional and the IRS to remain lawfully compliant.
Tax negotiation is possible. America’s Choice Tax eliminates the stress of owing taxes by examining all avenues of your tax situation. We guarantee that you’ll receive the resolution you qualify for or your money back!