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Tax debt can be incredibly stressful. For many taxpayers, missed payments during tumultuous times in their lives become tax debt that continues to grow with interest and other penalties. If their finances are further depleted by other factors in their lives, it can feel overwhelming to even think about paying back tax debt. A qualified St. Augustine tax debt settlement attorney can help you find an agreement that limits your tax debt or makes it more manageable.
It’s important not to ignore tax debt and to be aware that there are options. If you have tax debt, there may be multiple routes for managing it. State and federal tax agencies are typically willing to work with taxpayers who are making good-faith attempts to pay what they can.
At TaxSmith, LLC, we can review your tax debt and financial ability to determine what tax debt settlement solutions you qualify for and what solution is ideal for your circumstances. Our team has had decades of experience in tax law and tax debt, meaning we have likely worked on tax cases similar to yours. We know the legal options for settling tax debt and how to effectively negotiate a resolution for you.
Our team may be able to help you with an Offer in Compromise, an installation payment plan, penalty abatement, or another form of relief. Though we have plenty of experience to rely on, we know that every individual’s situation with tax debt is unique, and we ensure our advice fits your needs and interests.
Tax settlements are not always possible. Typically, when an individual owes the IRS (Internal Revenue Service) tax money, they must pay that amount in full. If paying the full amount isn’t in the individual’s power, the IRS may be willing to compromise so that the IRS collects a portion of the money they are owed rather than none of it. Many people have used this system to settle their tax debt for less or eliminate portions of their tax debt, but you must meet certain requirements.
Some options for settling or minimizing tax debt include:
The IRS will review factors such as your income, your resources and assets, your ability to pay, your expenses, and your debts to determine eligibility.
A: There are many potential options if you are unable to pay your tax debt, depending on your circumstances and your past tax payments. You may be able to get a payment plan installment, which would enable you to pay the entire debt over a period of time.
An Offer in Compromise is a solution if it is the first time you have failed to pay your taxes, which allows you to settle the debt for a lesser amount. You could also mark your account as Currently Not Collectible. A tax attorney can review your situation and your wishes to determine what is possible.
A: Yes, there are some situations where the IRS will settle for less. If a taxpayer is truly unable to pay their tax debt with their finances, they may qualify for an Offer in Compromise or a payment plan. An Offer in Compromise allows a taxpayer to settle a debt in a lump sum that is less than their total debt. Installment payments may also be a way to settle the debt for less.
For some individuals, a first-time abatement waiver is an option. This is if all previous tax returns were filed, and the taxpayer missed one unexpectedly. The taxpayer cannot have any penalties or debt to qualify.
A: When a taxpayer applies and qualifies for an Offer in Compromise, the IRS will calculate what they can reasonably afford to pay. An Offer in Compromise allows a taxpayer to pay a lump sum to settle their debt for less than it is worth. The IRS determines this amount based on the taxpayer’s income, debts, assets, and expenses. Very few taxpayers qualify for an Offer in Compromise, and even fewer are approved.
A: The Fresh Start program includes payment plans and other aid for taxpayers who owe back taxes and penalties and are trying to pay them. There are no income requirements. To qualify, there are eligibility requirements for taxpayers, including:
If a taxpayer meets these qualifications, they can apply to the program.
The knowledgeable attorneys at TaxSmith, LLC, can help you navigate the application process for the forms of tax relief you qualify for. Contact our team today to learn the options for settling or managing your tax debt.
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