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Can I Negotiate My Tax Debt in Florida? | Settle IRS Tax Debt

Updated: Aug 24


Coast to Coast - IRS Help

IRS Tax relief - Tax Debt Help

In Florida, Can I Negotiate My Tax Debt?

If you owe the Internal Revenue Service a significant past due tax debt, you may be wondering what your tax relief options are? Flat Fee Tax Relief has "Great News" for you. The IRS, in fact, offers a number of tax relief programs for those in situations such as yours and are now more amenable to working with you to collect the debt.

The tax relief services provided by our experienced tax professionals will prove invaluable you better understand your tax relief options are. Our team of tax professionals (IRS Tax Attorney, C.P.A. or Enrolled Agent) will also determine your present ability to pay the amount that you owe the IRS and advise you regarding the relief program that is best suited for your specific case. Choosing the tax debt relief program that is appropriate will certainly save you a lot of time, money as well as worry in the long run.

Common Options Available to Settle IRS Debt

There are a few choices that taxpayers may consider when it comes to settling IRS tax debt. Here are the alternatives to evaluate:

Offer in Compromise: This is an IRS settlement program that allows taxpayers to settle their tax debt for much less than what they owe. Typically, the IRS will accept an Offer in Compromise when the likelihood of collecting the full amount over 10 years from the date of assessment is low. The IRS wants to accomplish 2 things: collect money and close a file. When the IRS approves a tax settlement, they have achieved their 2 goals.

In order to be qualified and eligible for an Offer in Compromise, the following requirements must be met:

a. You must show evidence that it is impossible for you to pay your tax debt given your income, liabilities and assets.

b. You must offer to pay the maximum amount you can afford. This is done by calculating your monthly disposable income and reasonable collection potential or RCP, which is the amount of money the IRS thinks they can collect from you over 10 years, which is the statute period.

c. The IRS must approve that your offer amount is what it could reasonably collect from you. In such cases, the IRS agrees to lower your tax debt so it is in line with what you can afford to pay.

d. The amount that is agreed upon under the Offer in Compromise can be paid as a lump sum or in installments to settle the tax debt. The IRS will remove all tax liens when the agreed upon tax settlement has been paid. A successful Offer in Compromise will give the fresh start you deserve.

An Offer in Compromise may be pursued if there are doubts as to whether you can pay the entire tax debt, if there are doubts as to whether the tax was assessed accurately and if the collection of the tax debt would create a significant financial hardship for the taxpayer. It is important to note that the IRS has strict guidelines regarding eligibility for an Offer in Compromise. You do not need to be "destitute" to be eligible. You only need to have a lack of available funds after paying your everyday expenses. The IRS makes a determination based on your income, expenses and assets as to whether you can or cannot pay the tax debt. If it becomes apparent that paying the tax debt will cause you a financial hardship then, there is a very good chance that you will be eligible for an Offer in Compromise settlement.

Installment Agreements: This is another good strategy to employ when tackling your IRS debt. An IRS installment agreement will give you the flexibility to pay off your tax debt with monthly payments. Before you agree to any payment plan, you really should consult with a tax professional who regularly handles tax relief problems. The IRS offers a variety of installment agreements. An IRS tax professional will be able to guide you regarding which tax relief option will be best suited for your situation.

The IRS has many rules regarding payment plans. Do you owe less than $10,000? Do you owe more than $25,000? Less than $50,000? Are you over $100,000? Are you over $250,000? Do you have unfiled tax returns? Talk to a professional before agreeing to anything with the IRS.

Penalty Abatement: By filing for Penalty Abatement, you may be able to get rid of amounts owed because of fines and penalties, which could make up a substantial portion of your tax debt. You need a "reasonable cause" which there are many to have the IRS penalties waived.

Currently not Collectible: If you do not qualify to settle with the IRS, it may be possible to be placed into Currently not Collectible status. If you are, the IRS will leave you alone for 12 to 18 months before the ask you you to renew the status.

On the plus side, the Statute of Limitations will continue to run out giving the IRS less time to collect your tax debt. It's possible your tax debt will just "go away." On the negative side, the IRS will place a tax lien on you. The credit reporting services (Equifax, Trans Union, etc.) no longer reports tax liens on your credit profile so no one will know of it.

Tips to Negotiate with the IRS

Here are a few tips regarding a negotiation with the IRS and what to be aware of when you are assessing your options:

1. Make sure the statements you make and the information you provide to the IRS are accurate. Any inconsistencies will raise a red flag and the outcome of your negotiation may be jeopardized. Some inaccuracies or misstatements may also lead to criminal charges. So, it is important to be extremely careful. It is best to have an experienced and knowledgeable tax professional on your side who can help make the process more advantageous to you. 2. Learn about all the deadlines. The Statute of Limitations is very important. If you pay attention to crucial deadlines, you may be able to stop certain collection actions even before they occur. If you miss deadlines, you may simply be at the IRS’s mercy. Always remain calm and composed. You will achieve little by raising your voice at the IRS agent. You may experience long waits on the phone or have trouble getting in contact with an agent. While this can be frustrating, it is important to take deep breaths and avoid confrontation so you have the best possible shot at debt resolution.

3. Only make promises that you can keep. If you believe that you won’t be able to make a certain monthly payment, let the agent know that you cannot do so. Don’t set yourself up for failure by agreeing to pay an amount that you cannot afford. Once you default on your monthly payments, you will create another problem that will need to be resolved. The IRS may impose more stringent conditions and will start looking at enforcement actions.

4. Be proactive. When you initiate contact and approach them first, it shows that you are willing to resolve the tax debt.

Contact an Experienced Tax Professional

Finally, it is important to know when to get help and it's important not to over pay for tax debt help. Negotiating with the IRS and dealing with government bureaucracy can be complicated and frustrating to say the least. Before it gets too overwhelming, please contact an experienced tax professional with a nationwide track record of success. Flat Fee Tax Relief can help resolve your IRS tax debt, allowing you to rebuild your financial future.




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