Settle IRS Back Taxes

Sometimes a financial hardship is the reason people are behind on their taxes. There can be a number of reasons for a financial hardship and if the IRS agrees with your reasoning, you may be able to settle your debt for less than owe. If you owe back taxes and want more information on how to settle your debt with the IRS, contact New York Tax Attorney Service at (347) 535-4017.

Options for settling IRS back taxes:

Offer in Compromise

The first option is an Offer in Compromise. With an offer in compromise, you can submit a reasonable offer to the IRS with a 20% payment (plus the fee), and see if they approve it. It is somewhat difficult to get approved, but if you are really in a financial hardship and want a way to lower your tax payment, it is worth a shot. Read more about an IRS Offer in Compromise.

Penalty Abatement

If this is the first time you are late on your taxes, you may qualify for the IRS First Time Penalty Abatement. This will not lower the amount of taxes you owe, but it will lower or remove the penalties and interest that accrues on the amount owed. There are qualifications such as; you have to have a 3 year clear penalty history and that all your taxes are filed. Get more information on IRS Penalty Abatement.

Installment Agreement (Partial Payment)

An IRS Partial Payment Installment Agreement is different from an offer in compromise, because you don’t have to pay 20% upfront. With a partial payment agreement, you send in monthly payments and when the time period of the agreement is met, the rest of the debt is forgiven. As with basically all agreements with the IRS, there are stipulations that have to be met first. Read more information on IRS Payment Plans. The best option of all would be to make sure all your tax debts are paid on time. If you have difficulty making your payments, it is better to file an extension or set up a payment plan, before your taxes become past due.
Of course, these are just a couple of options to help get you on the road to resolving your unpaid tax debt. There are other options available, and each individual’s case is different. You can always contact the IRS directly to discuss any type of arrangement or if you have questions regarding your taxes.
Tax problems will not go away, so make sure to get them taken care of as soon as you are aware there is a problem. For immediate help in getting an IRS tax debt professional, contact New York Tax Attorney Service at (347) 535-4017, in New York City and , today.