Real Problems Can Actually Help with Reduced Tax Amount
A tax settlement is an arrangement which is acceptable to the IRS that allows a taxpayer to retire an outstanding tax debt for less than the original amount owed. IRS sometimes allow this type of tax settlement when extreme circumstances exist that would make it impossible for the taxpayer to honor the full debt. This is typically based on the circumstances of the taxpayer and current tax regulations. Learn here how a taxreliefprofessional.com can help with the tricky things.
What are the Benefits of an IRS Settlement?
There are several benefits of choosing to negotiate a tax settlement procedure.
· Pay Less Now –
The first and foremost is that the taxpayer pays a considerably lower amount to the tax authority. A tax settlement amount may be established and submitted in a relatively short length of time provided the applicant’s circumstance satisfies specific requirements. Once the balance is paid, the account is considered to be settled-in-full.
· Avoid Liens and Garnishments –
Another benefit of a tax settlement is that the taxpayer avoids the placement of tax liens or the implementation of a wage garnishment on his or her paycheck.
Who is eligible for a tax settlement?
The IRS provides settlements to taxpayers who are having financial difficulties paying their tax arrears or who have good cause to have penalties waived. The IRS primarily considers the taxpayer’s financial status when assessing whether they are eligible for a tax settlement. The IRS is typically given a good indication that a settlement would be a reasonable choice if the taxpayer is experiencing financial hardship. If the IRS determines that the individual does have sufficient income to pay off the entire balance due over time, the IRS will offer to accept monthly payments until it is fully paid.