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.
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.
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.
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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.
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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.
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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. [ 
