Can You Settle with the IRS Your Tax Debt for Pennies on the Dollar?
The Internal Revenue Service (IRS) offers several options for taxpayers who are unable to pay their tax debt in full, including IRS negotiation settlement. This option enables taxpayers to settle all their tax debt for far less than the complete amount owed. However, it is important to note that not all taxpayers will qualify for this type of settlement.
To be eligible for an IRS negotiation settlement, taxpayers must meet certain criteria and demonstrate that they are unable to pay their tax debt in full. The IRS will review the taxpayer’s financial situation, including their income, expenses, assets, and liabilities, to determine if they qualify for a settlement.
If the taxpayer is approved for a settlement, they will be required to pay a lump sum amount, which is typically a percentage of the total tax debt owed. The exact percentage will depend on the taxpayer’s financial situation and the specific terms of the settlement.
It is important to note that the IRS negotiation settlement process can be complex and time-consuming. Taxpayers who are considering this option should seek the assistance of a qualified tax professional who has experience in IRS negotiation settlement.
In addition to IRS negotiation settlement, there are other options available to taxpayers who are unable to pay their tax debt in full. The available choices encompass installment agreements, offers in compromise, and a status of being currently not collectible. A tax professional can help taxpayers understand which option is best for their situation and guide them through the process.
In summary, IRS negotiation settlement is a possible option for taxpayers who are unable to pay their tax debt in full. However, eligibility for this option depends on the taxpayer’s financial situation and not all taxpayers will qualify. It is important to seek the assistance of a qualified tax professional when considering any tax debt resolution option.