2 Ways To Settle A Tax Bill With The IRS

When you owe the IRS money for back taxes, you should not expect them to drop this issue without receiving any money. The IRS does not drop tax bills that consumers owe, but they do accept payment plans and settlement offers. If you owe money for back taxes and need help settling this issue, contact a tax attorney. The attorney might suggest using one of the following two methods for settling this debt.

Create a Repayment Plan That the IRS Accepts

The first option is creating a repayment plan to pay off the debt over time. A payment plan allows you to make payments to the IRS to pay the money you owe. You can create a plan that lasts a year or longer, and you must present it to the IRS. You cannot use a payment plan to pay your debt unless the IRS approves it. Do you want to use this method? If so, you should consult with a tax lawyer to find out if this is a good idea. If the lawyer thinks that you should use this method, the lawyer will help you create the plan. The lawyer will negotiate with the IRS and help you work out a plan that is right for you and the IRS.

Use an Offer in Compromise

The other option is to consider using an offer in compromise (OIC). An OIC is a unique program the IRS uses to allow people to settle back taxes. An OIC is a settlement plan that involves settling your debt by paying less than you owe. For example, if you owe $50,000 to the IRS, an OIC may allow you to settle it by paying only $35,000. The amount you will pay to settle your debt depends on many factors. For example, it will depend on your income. It will depend on your financial situation, and it will depend on your ability to repay the debt. You should not use an OIC without the help of a lawyer, as using a lawyer improves your chances of the IRS approving your case.

These are the two key methods that people use for settling tax debts. You should not attempt either method without consulting a tax attorney. A tax attorney can review your case to determine if you owe the IRS money and will then help you choose the right route to take to settle it.