IRS Assistance

Tax Settlement Services

Be wary of tax companies that promise they can settle taxes for less because there is no way of them knowing for sure before knowing your complete tax and financial situation.

Settling taxes for less is possible but is not an option for everyone. Being able to settle for less is determined mainly by the taxpayer's ability to pay, future ability to pay, situation that caused the liability, errors made by the taxpayer or possible errors made by the taxation authorities. Below are some methods that may be used to settle for less.

• Offer in Compromise: This method allows taxpayers to settle for far less than the total amount owed if they meet the strict guidelines and complete the paperwork 100% correctly.
• Partial Payment Installment Agreement: Allows the taxpayer to make small monthly payments towards the debt. The debt may be forgiven if it is not all paid back before the collection statutes expire.
• Uncollectible/Hardship: The taxing authorities can stop collection actions until the taxpayer's financial situation improves. The debt may be forgiven if their situation doesn't improve before the statute expires.
• Penalty Abatement: If the taxpayer has an acceptable reason for not staying in compliance with tax laws there is a possibility that they may waive penalties that were charged.
• Amending tax returns: Many situations come up where the taxpayer may have made errors with prior filings or the tax authorities filed on their behalf which caused them to owe more taxes than they actually did. In these situations, an amended tax return will be filed to lower the tax liability.