Settle Tax Liabilities

It's possible to settle tax liabilities in a number of ways. The various methods differ in how they affect the tax balance due and the payment plan, but there?s a lot of flexibility in how both are handled. Skillful negotiation with the IRS can lead to resolution of most tax problems.

According to Your Terms

When you need to settle tax liabilities, it means the amount of tax due cannot be paid at your current earnings level. A tax liability can be the sum of more than just the income taxes you owe. It includes the tax, penalties, and interest.

Once the tax liability has been established, the IRS begins collection proceedings. This collection process can be brutal as the horror stories people tell have proven. The IRS can seize, levy, lien and harass all they want until someone points out there are remedies for unpaid taxes.

That's where a tax negotiator can be a blessing. The IRS has the right to forcibly collect overdue taxes, but their methods of collection are merciless. It?s possible to actually get further and further behind even while making payments.

At some point, you have to admit the situation looks hopeless unless the taxes are reduced or the IRS collection process lightened. A tax negotiator can help you settle tax liabilities through one of a number of solutions.

  • Releasing wage and bank levies
  • Correcting assessments with errors
  • Submitting an Offer In Compromise
  • Establishing an installment payment plan
  • Filing an Injured Spouse form

This is just a brief list of ways to settle tax liabilities. There are others including negotiating a lower debt amount and then paying off the balance due, or getting the tax amount identified as uncollectible.

Setting Early Terms

Of course, it;s much easier and quicker to settle tax liabilities if you negotiate payment before the collection process gets to the point of levies and liens. In other words, it's easier to prevent a lien than it is to get a lien removed. A tax negotiator can intervene in the collection process at every stage from issuing computerized notices to filing liens and levies.

The earlier you are able to come to an agreement with the IRS on payment of tax balance due, the better off you will be. Tax negotiation usually involves obtaining reductions in penalties and interest and even the tax that is due. So the sooner you negotiate, the easier it is for the IRS to negotiate from their side also.

When you need to settle tax liabilities, don?t hesitate to get professional assistance. Believing you can handle it alone can get you into more trouble. The power of the IRS is unlimited and you want to be sure you get the best agreement possible.

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William McConnaughy is a certified public accountant with over 28 years of experience. As a former IRS Revenue Agent with a Master’s Degree in Taxation, he has helped countless individuals. Watch our video and contact William McConnaughy today for help with your tax needs.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an accountant-client relationship.
William McConnaughy, Tax Help Pro - Certified Public Accountant
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