What You Should Know About Tax Settlements

What You Should Know About Tax Settlements

Paying taxes can be cumbersome to most people, more so if they have been unable to do so for the past couple of years, resulting in them owing considerable sums to the IRS. To make matters worse, many find the Internal Revenue Service website full of tax jargon, leaving them more confused than ever when trying to figure a way out.

Here’s where professional tax settlement services can come in exceptionally handy. They help ordinary folks and businesses seek and avail of tax relief by negotiating a settlement with the IRS on their behalf. However, the individuals and entities in question must qualify for the settlement.

The following information clearly outlines what settlements truly mean and how a firm can assist you in availing of one.

What Is A Tax Settlement?

A tax settlement is a legal agreement between you and the Internal Revenue Service that resolves your unpaid taxes, interest, and penalties. These are often used when there is money owed in taxes due to an error on your part or if you have made an honest mistake with how much money was owed to the tax authorities.

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You must meet certain criteria to receive a settlement, which often depends on the specific case. Once it is determined that you qualify, you can apply for the type of settlement you wish to have and begin negotiating with the IRS. Some people pay the amount all at once, while others have a schedule set by the authorities whereby they make timely payments within their means.

Invariably, a settlement can be helpful for anyone owing a large sum of money to the IRS, whether businesses or households.

Benefits Of A Settlement

A significant benefit of a settlement is that it enables you to pay a considerably lower amount of money than what is due to the tax authorities. If you involve a professional firm to negotiate on your behalf, you might have to pay much less than the original amount. For instance, reputable companies have successfully negotiated settlements for individuals and businesses owning more than a million dollars, ensuring they only pay around twenty or thirty thousand dollars, depending on the case.

Another major plus is avoiding tax liens on your business or property or a bank levy on one or more accounts. Lastly, it can also prevent wage garnishments from being placed on your paycheck to extract a debt.

What A Tax Resolution Firm Can Do For You

Hiring professional tax settlement services is an excellent idea as they know the tax process, employing legal experts and other industry specialists to help handle your case. Typically, a reputable firm will consult you first to understand your case, gauging if you qualify for a debt settlement.

If you do, they will negotiate with the IRS on how best to go about settling the case, determining the best course of action based on the case specifics such as finances, the statute of limitations, etc. In the end, they will help you find an acceptable offer, whether a lower settlement amount, payment in installments, or another option.

So, find a company that is honest about its services, represents its capabilities via successful case studies and employs the ablest industry experts to handle your case.

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