IRS Debt Settlement

Every year individuals and businesses alike find2. Taking action to stop a Wage Garnishment or Levy
themselves in what feels like shark infested waters,3. Preparing any un-filed taxes (This can be time
that is, owing back taxes to the IRS. Of course if youconsuming if you have many years of un-filed taxes
owe a few thousand dollars and you can afford toand have no records.)
pay them in full, then that's exactly what you should do.4. Pulling a master tax record to determine exact
But what if you owe over $10,000 and can barely getamount owed
by each month? It's for these people that obtaining an5. Preparing your financial worksheet and determining
IRS debt settlement should be a goal. The first thingyour monthly surplus.
you need to do is determine whether all of your taxes6. Determining the penalties & interest charged.
have been filed. The reason for this, is that the IRS7. Filing possible appeals based on TBOR legislation.
requires all your taxes to be filed prior to negotiating a8. Filing for Penalty Abatement
tax settlement with you. You then need to start asking9. Determining whether you qualify for Innocent
yourself question, such as why it is that you oweSpouse, Offer In Compromise, CNC Status, Payment
these taxes in the first place. Have you been chargedPlan, etc. and combinations of those options.
penalties and interest? Did the IRS file taxes on your10. Preparing the documents and filing.
behalf, which caused you to owe more than you really11. Negotiate with the proper Agent at the IRS that has
should have? Do you have any kind of hardship thatthe authority to make decisions and reduce your tax
may assist with your negotiation? Have you receivedliability.
a Levy Notice? These are all crucial questions which12. Follow up with all paperwork and phone calls
when answered will let you know your options withpromptly with the IRS Agents that are handling the
regards to IRS debt settlement.case.
Do keep in mind that under the TBOR law, you haveCertain filings have required IRS fees. However, you
the right to have a firm represent your case to the IRSmay qualify to have those fees waived. If you have
to negotiate an IRS debt settlement if you owe IRSexperience with tax preparation, that may help you
back taxes. But what are the odds that you'll qualify,with settling your taxes because at least you'll
and for which program? There is no good answer tounderstand the basics of taxes, although not the
this as everyone is different. Some people may qualifylegalities of course. If it's all mumbo jumbo to you
for a large debt reduction program while others will not.however, you may seriously want to consider hiring an
Sometimes a formal Offer In Compromise is the bestIRS Tax Representation Firm that does this for a living.
solution, if it is accepted. However often times anIRS debt settlement, and for that matter, resolving
experienced Tax Professional can negotiate your IRSback taxes in general, can be a lengthy process,
Debt over the phone with the IRS Agent and settlewhere one mistake could cost you everything.
your tax debt for much less than you owe withoutIRS debt settlement is serious business. But don't make
having to go through the long term process of waitingthe mistake of thinking you have no options for tax
for an Offer In Compromise solution.relief. Also, don't fall into the trap that your only option is
As mentioned above, everyone has a different needan Offer In Compromise. That is not true for most
and so different measures may be taken. Some ofpeople. There are numerous options and combinations
the steps required toward IRS debt settlement mayof options available, but again you need to do your
consist of the following:homework.
1. Filing a Power of Attorney