Negotiating for Tax Relief
Receiving a letter or other type of contact with the Internal Revenue Service can be scary and intimidating – especially if you don’t know or understand your options. Never ignore the problem, but meet it head-on.
Hoping it will just go away isn’t an option. Written correspondence from the IRS is a red flag that you should take immediate action. That may mean that you can try to negotiate with them for some type of tax relief.
Always respond as soon as possible to any communications you get from the IRS and answer all questions related to the matter. Talking to them by phone on a one-on-one basis is often a better option than snail mail.
Make sure you document who you’re talking to and any resolution that was reached during the call. Your best chance for successful negotiation with the IRS is to file your taxes on time.
This reduces your chances of incurring any penalties. It also helps you negotiate a settlement which might be less than what you owe (based on what you can afford) or entering into an installment agreement which lets you pay in monthly installments.
Rather than feeling intimidated, take immediate control of your tax situation. Never ignore the problem. Although negotiating with the IRS may cause stress, it’s usually best to deal with the IRS on a personal level rather than hiring a tax relief company.
If you absolutely don’t understand or don’t have the capacity to deal with the IRS, there are legitimate tax relief organizations that can help you get through the maze by helping to negotiate the installment agreement, reduce penalties and keep your wages from being garnished.
Some IRS settlement options that you may not be aware of include a partial payment installment agreement which lets you use a long-term payment plan and a reduced dollar amount to pay your debt in installments rather than all at once.
Another method is called Offer in Compromise, which lets you settle your tax debts for a lesser amount than what you currently owe. You may be required to pay a lump sum or use a short-term payment plan, but if you owe more than you can pay, this may be the best option to negotiate.
The program, Not Currently Collectible means that the IRS agrees to let your tax debt ride for a year or so. This may be a good method if you have no way to pay back the tax debt – and, you can file an appeal to halt seizures, an IRS levy or liens on your property.
There are no secret methods to negotiating tax relief, but there are ways to stop the IRS’ debt collection methods which can be aggressive at times. Keep in mind that the IRS does have the power to seize your assets, garnish wages or place a lien on any property you might own to get the money you owe.
You can prevent these actions by proper communication with the IRS. They’re usually amenable to working with honest taxpayers who reach out to them to help resolve your debt problems.