Tax Settlement Law

Tax Settlement legal Issues

What is a Tax Settlement?

A tax settlement is an arrangement in which the IRS or state tax authority agrees to accept a total tax payment for an amount that is less than what was originally owed. If a taxpayer has a large tax debt that they cannot financially afford, the IRS or state tax authority may be willing to take a settlement for a lower amount and consider the debt paid in full. If the tax authority accepts a tax settlement, the new amount owed will typically have to be paid off within a certain time frame. The taxpayer can either pay in one lump sump or can set up a payment plan with the tax authority. During this time, it is possible to request there is no interest or late penalty fees added to the total balance of the tax settlement. Once the settlement is agreed upon, the taxpayer will be considered in good standing with the IRS or state tax authority for the year(s) that the settlement covered.

About IRS Tax Settlement Legal Issues:

Tax Settlements are only available to a small percentage of people with tax debt that are experiencing financial difficulties that prevent them from paying their tax bill in full. Trying to negotiate a tax settlement can be difficult, as tax regulations are complex and timelines are usually strict. If any mistakes are made, the taxpayer could face penalty charges and fines, a tax lien or levy, and/or tax fraud or evasion charges, which could result in jail time. If a tax settlement is not negotiated quickly additional interest and fines can accumulate.

What a Tax Lawyer Can Do For You

A tax settlement attorney can attempt to negotiate a tax settlement with the IRS or your state tax authority on your behalf. An experienced attorney can help navigate the legal language and complicated tax laws for you, so that you don’t find yourself in deeper debt or legal trouble. If you cannot afford your tax debt, an attorney will work with you to establish the right debt relief option for you. Together with your tax attorney, you might decide to file an application for an "offer in compromise (OIC)," which would result in the amount of your tax debt being reduced. Or, your lawyer might help you set up a payment plan or IRS installment agreement. Your tax lawyer can also help you receive a penalty abatement, which is a policy that would eliminate or reduce any tax interest or penalties that may be included in your tax bill. There are many options in negotiating a tax settlement. It is important to know and have up to date knowledge of the options available for a tax settlement. An experienced tax attorney will find the right solution for you so that you can experience tax debt relief fast.

Lawyer Referral Service:

Attorney Search Network can provide you with a referral to an experienced tax lawyer to help negotiate a tax settlement for you today.

If you need the help of a professional tax attorney and need to deal with your tax burden, we can help you. Call Attorney Search Network and we can help you locate a general tax lawyer in your area.

If you have any questions about the information provided above, 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.