What Is an IRS Tax Settlement?
IRS tax authorities do not want to make people’s lives miserable by harassing them. They just want to get the tax money that taxpayers owe. For this reason, the IRS negotiates tax settlements. Depending upon your financial and tax situation, you may be able to negotiate a tax installment payment agreement, an offer-in-compromise settlement or currently-not- collectible status. Our law firm can help you figure out the best option to settle your back taxes.
IRS Tax Installment Payment Agreement
When you owe federal taxes but do not have the resources to pay them in one lump sum, you may qualify for a monthly installment plan. In an installment plan, you agree to pay a specific amount to the IRS each month in order to pay back the money you owe over a few months or a few years. There are different types of installment plans based upon how much you owe and your current financial situation. There are also certain conditions that must be met for installment plans, including that you must be current on filing your tax returns.
Once such a tax payment plan is put in place, the IRS will stop collection actions against you. It must be noted, though, that unless you can negotiate otherwise, interest will continue to accrue on the unpaid balance of your tax debt until it is paid off. Our tax settlement attorney Timothy S. Hart is a skilled negotiator who understands IRS rules and the leeway that tax agents have in negotiations. He may be able to negotiate to have the interest reduced and or waived, as well as any late-payment penalties, in order to get you the lowest payment amount possible.
Like a traditional installment plan, the partial pay agreement lets you make monthly payments on your tax debt. However, with the traditional installment agreement, you pay off the entirety of the balance, but with a partial pay agreement, you only end up paying off part of your tax debt. The IRS settles the rest of your tax bill. Our tax attorneys can answer your questions about this tax settlement program and help you determine if it’s the right option for your situation.
Offer-in-Compromise IRS Settlement Program
Clients often ask whether the IRS is willing to settle for less than the full amount of taxes owed. There are sometimes reasons the IRS will agree to settle for less, such as if the current financial situation of a taxpayer makes it impossible for them to pay the full amount or paying the full amount would create an undue hardship. In these situations, you might be able to get an offer in compromise, which is a legal way to potentially greatly reduce the amount of back taxes you owe.
Not everyone is eligible to get an offer in compromise. To start the process, you make an offer to the IRS of what you believe you can afford to pay. In deciding whether to accept your offer, the IRS will review your financial information and tax returns to determine whether to accept or reject your offer. You will need to be in compliance with a variety of rules, tax procedures and tax regulations in order to stand a chance at approval of your OIC. You will also need to include an initial payment when you apply for the offer in compromise. If your offer is accepted, you may have up to 24 months to pay off your reduced tax burden, depending upon your payment terms. If your offer is rejected, the IRS applies your initial payment to your tax liability.
Currently-Not-Collectible Status
In some cases, the IRS may determine that a taxpayer is unable to pay any of the taxes owed and give them currently-not-collectible status. When a taxpayer has CNC status, the IRS temporarily stops all collection actions until the payer is in better financial shape, although interest and penalties continue to accrue. The IRS will periodically review whether the financial conditions of these taxpayers have improved and, if so, will again pursue payment. The IRS may also file a tax lien against any assets of a taxpayer with this status.
To discuss what tax payment option is the best for your situation, reach out to tax settlement attorney Timothy S. Hart today for a free consultation.
Turn to a Responsive Tax Settlement Attorney for Help
Most individuals who owe the IRS money are responsible citizens who know they have an obligation to pay their taxes and would readily do so if the funds were available. It would be difficult to find a person who enjoys living under the constant pressure that tax debt brings, including ongoing telephone calls asking for payment and routine mailings demanding that the tax matter be settled. As tax money remains unpaid, collection actions — including bank liens, wage garnishments and, in some cases, seizure of assets — become more of a possibility.
Our tax settlement attorney can help ease the pressure and stop aggressive collection actions by the IRS. The New York State Department of Taxation has tax settlement plans similar to the IRS. If you owe back taxes in NYS, he can help you as well. Call Timothy S. Hart today to learn about your options for a tax settlement.
Dial our Albany office at (518) 213-3445 or our NYC office at (917) 382-5142 to schedule a free, no-obligation consultation. Our attorney represents taxpayers in IRS settlements and New York State tax settlements.
How to Get a Tax Settlement for Back Taxes
The only way to get a real IRS tax settlement solution for your back tax debt is by becoming proactive, even if you don’t have one extra dime to allot to tax arrears. Becoming proactive begins by knowing what control you have left over your situation.
It is true that the IRS has a great deal of power, and that can be intimidating. They are bound by laws, however, and some of those laws work in your favor. You need a legal professional who knows the true extent of these laws and understands how to work within them on your behalf. This is why an experienced IRS tax settlement lawyer can become your best and most well-informed resource for getting your tax matters under control. Our tax settlement attorney Timothy S. Hart is also a Certified Public Accountant. His experience as both a tax attorney and a CPA gives him in-depth insight into federal tax laws and how these laws affect the situations of individual taxpayers.
What Our New York Tax Settlement Attorney Will Do to Help You
When you work with our knowledgeable attorney, he will carefully assess all the details of your case to determine exactly what your tax situation is. Nothing will be taken for granted. He will review the accuracy of your tax debt and speak with you about your current financial situation. Once our professional tax negotiator feels he thoroughly knows your tax case, he will then negotiate a workable IRS tax debt settlement as a solution to your stressful unpaid tax situation.
You may be thinking that you just can’t afford to hire an attorney to help with your tax situation, but the real question is, can you afford not to? It isn’t just a matter of having a past tax debt sitting there with a set amount that needs to be paid. Your debt is no doubt steadily increasing as penalties and interest continue to add up. Even once you get on your financial feet you are going to have a very hefty tax obligation to meet, which is certain to hinder your financial recovery.
Tax Settlements
Attorney and CPA, Timothy S. Hart has worked up close and personally with many, many clients grappling with massive tax problems. He understands the stress, anxiety, and uncertainty a person feels when they get that letter or phone call from the IRS or New York Department of Taxation and Finance demanding payment of overdue taxes. With a skilled attorney at your side, you can take a deep breath, create a strategy, and find a way through to the other side. Consider these successes:
An Affordable Payment Plans
We represented a business owner before the New York State Department of Taxation because of a sales tax criminal investigation of his business. We were able to negotiate a payment plan of $1,500 a month to pay off the over $500,000.00 in sales taxes owed, with no criminal charges being filed. We represented an individual client and convinced the IRS to accept a monthly payment plan of $1,500 for their $810,800 tax debt, even though she owned a valuable real estate partnership interest. Lastly, for a client that owes the IRS $2,312,145, we were able to convince the IRS to accept a $3,163 monthly payment plan to pay off the tax debt.
Settlements with the IRS
Our tax law firm negotiates aggressively in a solution-focused manner to achieve account settlements with the IRS that are manageable. One of our clients, Jeff K. owed the IRS $1.789 million, and our tax problem lawyers were able to strike an agreement in which he could settle the debt by paying just over $351,000. Another client, Marino F. owed $189,100 in civil penalties related to unpaid payroll taxes and income taxes, and they settled for $79,273. Another elderly client, John M. whose wife had passed away found out that she did not pay the taxes owed on her income when they filed their joint income tax return. We were able to reduce the $128,466 IRS assessment to zero through filing an innocent spouse claim. With the same client, we were able to settle his Ohio tax debt of $10,700 for only $221. We have also been successful in having the IRS remove penalties assessed in numerous cases.
Settlements with the New York Department of Taxation
Our law firm has had tremendous success in negotiating on behalf of clients with the New York State Tax Department to settle old tax debts for a fraction of the amount due by utilizing their offer in compromise program. One client, Karen P. owed $430,000 in payroll taxes, and she settled the account for $70,000. Another client, Misha A. owed over $100,000 in unpaid sales tax from a failed business, and we were able to settle for $49,000 payable over 60 months. For another business client, Nite M. owed $850,000 in sales taxes and was able to settle the account for less than half that amount ($323,000 paid over 5 years) even though they are still in business and profitable. Lastly, in the case of another client, while married our client had a joint income tax debt of over $57,000. We convinced the New York State Tax Department she was an innocent spouse and lowered her liability to zero. Needless to say, these clients were pleased with these outcomes.
When it comes to tax law, it’s all about understanding the technicalities and finding ways to achieve solutions that clients can manage. Most clients want a resolution so they can move forward with their life, with less anxiety, but they’re scared and confused because the law is complicated and tax institutions can be intimidating. Our law firm will walk beside you every step of the way, providing reassurance, communication, guidance, and tangible solutions.
Don’t Wait—Turn to a Reputable Tax Attorney
If you have been keeping money aside for an emergency, then it would be well worth your while to consider your tax obligation as a financial emergency. Consider using these funds to utilize the services of a reputable IRS tax settlement attorney who has the ability to negotiate a tax solution for your particular needs. By using the skilled resources available to you, not only will you relieve the mental and emotional stress that you are experiencing now, but you will have the ability to improve your financial future.
Common Questions about Tax Settlements
Here are some common questions about tax settlements. For answers to your individual questions, speak directly to a tax attorney.
If your offer in compromise is rejected, you have the right to appeal the decision but must do so within 30 days of the date on the rejection letter. If you were turned down and you are not already working with an attorney, it is very important at this stage to get legal help for your appeal. Your appeal is your chance to change the rejection to an approval, and you stand a better chance of doing that and getting the tax settlement help you need with a skilled attorney at your side. Call Timothy S. Hart in Albany at (518) 213-3445 or NYC at (917) 382-5142 to schedule a free, no-obligation consultation.
Yes—you can still apply for a payment installment plan if you were rejected for an OIC. Our attorney will work hard to negotiate a payment plan that is realistic for your financial situation.
There are situations in which the IRS may not agree to a tax payment installment plan. These generally apply in cases where taxpayers have signed installment agreements and then not made their payments or were late in making payments. If incorrect financial information was provided, taxpayers may be turned down for installment plans. In other cases, the IRS, after examining a person’s financial records, may determine that some expenses are not essential and turn down installment proposals.
Our tax settlement attorney knows how stressful it is to owe the IRS money. Attorney Timothy S. Hart wants to help you discover an IRS settlement program that is workable for your individual situation. Contact our law firm today for a free consultation.
Wondering “How Do I Negotiate a Settlement with the IRS?”
Let Attorney Timothy S. Hart Help You Settle With the IRS
Take the first step to back tax relief by reaching out to a skilled tax attorney for help. Timothy S. Hart will examine your situation and advise you about the best possible settlement path forward, and he will negotiate vigorously on your behalf with the IRS and/or NYS tax authorities. Do not wait to get your tax situation under control. The longer you delay, the worse your situation will become, with additional penalties and interest and increasing collection tactics by tax agencies. Call us today at our Albany office: (518) 213-3445 or New York City office: (917) 382-5142 to be on the path to settling your tax debt.
Negotiating IRS Tax Settlement Plans Nationwide
Tax settlement lawyer Timothy S. Hart is licensed to help taxpayers throughout the country. If you qualify for an IRS settlement plan, he can work to negotiate an agreement for you no matter what state you live in. Don’t wait for your tax situation to grow worse with additional interest and penalties and more and more aggressive collection actions. Get compassionate and knowledgeable legal help today.
Client Testimonial
”Several years ago I was looking at having my wages garnished due to back taxes. Timothy Hart stopped the garnishment proceedings and worked out a settlement agreement offer. I no longer had to pay the full amount plus the interest. I was able to make payments based on my income. I continue to use his services yearly for my taxes. He provides professional services at an affordable price.” – Steven Marshall (Google Review)
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Timothy S Hart, the founding partner of the tax law firm of Timothy S. Hart Law Group, P.C. is both a New York Tax Lawyer & Certified Public Accountant. His area of expertise includes innovative solutions to solve your Internal Revenue Service and New York State tax problems, including tax settlements through the Federal and New York State offer in compromise programs, filing unfiled tax returns, voluntary disclosures, tax audits, and criminal investigations. [ 
