Tax Debt Arbitration Law

Tax Debt Arbitration

What is Tax Debt Arbitration?

Tax debt arbitration is a negotiation or mediation of one's tax debt. Taxpayers that are in deep debt to the IRS can potentially settle their tax bill for less than the full amount owed through tax debt arbitration. If a taxpayer can prove financial hardship, the IRS may be willing to work with the taxpayer to find a solution, provided the taxpayer communicates quickly with them about his or her financial situation. Methods of tax debt arbitration include:

  • Installment agreements or payment plans, in which a taxpayer can pay off his or her tax bill monthly, over a certain period of time,
  • Offer in Compromise, in which a taxpayer can apply to pay less than the total amount of their debt owed,
  • Tax Penalty Abatement, in which the IRS agrees to eliminate or reduce any interest or penalty fees that have been added to your tax bill,
  • A status called "Not Currently Collectible," which means the taxpayer cannot afford to pay any of their tax debt, and the IRS agrees to not collect on the debt for a certain period of time.

When someone owes taxes due to a hardship in life, settling the outstanding tax debt through tax debt arbitration allows the taxpayer to focus on other life issues. Tax Debt Arbitration can be a very good option to deal with outstanding taxes.

Tax Debt Arbitration Legal Issues:

Not everyone will qualify for tax debt arbitration and the IRS can be difficult to negotiate with. If the IRS concludes that you can pay your total debt owed through installments, they will not approve your request to settle for less than the full amount owed. You may also be ineligible for tax debt arbitration if your tax filings are not current. If you owe outstanding back taxes, the IRS has many ways to collect on debts owed to them (seizing assets, garnishing wages, liens, etc.). If your debt remains unpaid, you could face fines, penalties, interest, and even jail time. Tax Debt arbitration can help you avoid such consequences, but it can be a complicated process to navigate on your own.

What a Tax Lawyer Can Do For You:

To determine if you are eligible for tax debt arbitration, consult with a lawyer with experience in tax law. Tax laws and dealing with the IRS can be incredibly complicated and time consuming, and if you make a mistake, you may find yourself with no debt relief options available to you. An experienced tax attorney will help you prepare for tax debt arbitration properly, and will go through all of the necessary steps with you, so that you have the best chance at achieving some form of tax debt relief.

Lawyer Referral Service:

Attorney Search Network can provide you with a referral to an experienced tax lawyer to help you with tax debt arbitration.

If you need the help of a professional tax attorney to settle your tax burden, we can help you. Call Attorney Search Network for a referral to a tax lawyer near you today.

If you have any questions about tax debt arbitration, please contact us. Call us toll free at (800) 215-1190 or fill out our online form for your Tax lawyer referral.


If you have any questions about the information provided above, please contact Attorney Search Network.

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