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Settle IRS Tax Debt | Tax Settlement

Updated: Aug 23


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Settle Tax Debt - IRS Settlement

Offer in Compromise

It is indisputable that the Internal Revenue Service is one of the most powerful collection agencies in existence. The IRS has the authority to access every U.S. financial entity in its mission to collect back taxes. The IRS can even penetrate the cloak of corporate anonymity as well joint accounts to affix personal liability, with the ultimate authority to decide just who is responsible for a tax debt.

The IRS “Hammers”

The IRS has vast collection powers, defined in its approximately 80,000-page Tax Code. Specifically, the IRS has the authority to:

a. Attach a tax lien on a taxpayer’s property to protect the government’s ability to collect delinquent taxes,

b. Apply an outright tax levy (#IRSgarnishment), which will seize cash (bank acccount), securities and investment accounts, and confiscates whatever property the taxpayer holds to pay the tax debt, including a significant portion of a taxpayer’s paycheck.

The IRS can file a tax lien notice at the taxpayer’s local courthouse. An IRS tax lien is like the elephant in the room: it acts as official notification that the IRS has first dibs on the taxpayer’s property. Third parties who are entangled within an IRS lien or tax levy — bank officers, employers, insurance brokers for permanent life insurance policies sold to the taxpayer — have absolutely no choice but to comply with IRS legal seizure on the delinquent taxpayer. Facing an IRS Tax Debt Realistically

Obviously, paying income taxes on time — or later with penalties — will prevent an IRS tax lien and/or a tax levy. The agency works under the premise that if the taxpayer has assets and owes taxes, and a tax debt takes precedence over any desire to preserve a financial asset.

Time May Not Be Your Friend

Taxpayers who are in tough financial straits, there are options in getting out of tax debt. You do not have to be destitute to settle with the IRS. If you have little left over after pater paying your allowable expenses, there is an excellent chance to settle your tax debt. The IRS Paper Trail

A formal notification process begins once the IRS determines that a taxpayer owes back taxes. It takes about six weeks from the first formal notification until the final notice is issued. At that point, the taxpayer has 30 days to appeal.

Once a tax lien or a tax levy has been issued, the IRS has provisions to release or remove them. Each provision has the goal of freeing up the taxpayer’s assets to make it easier to pay off the debt.


Time Payments - Installment Agreement

An experienced tax professional can apply for a time payment plan to settle a delinquent tax debt in manageable monthly installment payments. The IRS favors direct bank debits, but taxpayers may also mail in paper checks or money orders. If you choose to pay with any other than a debit card, the IRS will file a tax lien. The agency won't tell you that, but that's what will happen. Offer in Compromise - IRS Settlement Another option is a tax settlement through an Offer in Compromise, which, allows taxpayers to settle their delinquent tax debts by paying only a portion of what they owe. As you might imagine, there are strict eligibility requirements to qualify. The bottom line is that taxpayers must be able to demonstrate an inability to pay the outstanding tax debt for the IRS to accept an Offer in Compromise.

A taxpayer does not have to be destitute to receive a successful Offer in Compromise. What needs to be shown that there isn't any money left over after the taxpayer pays their everyday expenses (allowable expenses). Allowable expenses include housing, food, clothing, health insurance, utilities, car payment(s), child support, alimony to name a few.

Getting Professional Tax Assistance

It’s easy to become overwhelmed when attempting to navigate complex IRS regulations, voluminous and confusing instruction booklets and forms on your own. Owing a tax debt to the IRS can be a confusing and intimidating thing. It is hard to know what you’re supposed to do to settle that tax debt. That's why it's always to your benefit to have experienced representation.

Should you be faced with the immediate threat of a tax tax levy, or wish to negotiate an Offer of Compromise, it’s wise to seek experienced professional tax debt help. That’s where the IRS problem solvers at Flat Fee Tax Relief comes in. At Flat Fee Tax Relief, it’s our job to be in your corner, helping you to eliminate IRS tax debt. Flat Fee Tax Relief Will Always Fight For You

We actually work with the IRS every day on behalf of our clients, and will use our experience and knowledge to benefit you. From day one, our experienced tax professionals are prepared to provide you with protection from IRS asset seizures while we negotiate on your tax debt resolution.

Your IRS tax problems are never too big or too small for our team. Should you need help or have questions about preparing your tax return, we can help you. If you’re facing a tax lien, a tax levy, a tax garnishment (#IRSwagegarnishment), we can help you with that as well. If you need someone to negotiate on your behalf or to represent you before revenue officers, we are prepared to do so fearlessly.

Our tax pros feel that with the COVID lockdowns creating economic havoc, now is the time to rely on the experience and dedication offered by Flat Fee Tax Relief. We feel that the IRS will be saturated with unpaid tax debt to collect. The sheer volume of taxpayers unable to pay their tax liabilities will cause the IRS to increase their OIC approval rates. The IRS will be under pressure to close files. Currently the agency approves approximately 42% of all Offer in Compromise submissions. Flat Fee Tax Relief clients get approved at a rate of 96%.

Contact us today for more information on how you can settle your tax debt.



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