IRS Taxes Settlement: Facts to Know
If your tax debt has grown so high you are considering those "pennies on the dollar" commercials you keep seeing, then you need to look into what an IRS taxes settlement entails. Always look before you leap. It is entirely possible to make your tax problems much worse by pursuing the wrong solution for you situation. This page will help you to understand the process and risks of filing for an Offer in Compromise.
How to File for an IRS Taxes SettlementTo file for an IRS taxes settlement with an Offer in Compromise, follow these steps.
- Obtain, complete, and submit a Form 656 Booklet.
- Complete Form 433-A for a personal tax debt. Form 433-B is for a business tax debt.
- Send your forms with a non-refundable $150 application fee and 20% of your offer.
If your IRS taxes settlement is accepted, you will need to pay the remaining balance of your offer in five or less payments.
Risks of Filing for an IRS Taxes SettlementThere are many risks associated with filing an IRS taxes settlement. The biggest risk is that you are completely disclosing all of your finances to the IRS. It is more likely that your offer will be rejected than accepted, and the IRS will use your financial information to collect on you with levies and seizures. Other reasons why filing for an IRS taxes settlement may not be the best option for you include the following.
- The large amount of money you send with your application is non-refundable.
- The IRS can take up to two years to make a decision.
- While your case is being reviewed, the statute of limitations is suspended.
- You will have a short amount of time to come up with the entire offer.
- You must file and pay taxes on time for the next five years.
Who You Should Hire to File an IRS Taxes SettlementMany tax firms claim that they can dramatically lower your debt with an IRS taxes settlement. However, not all firms are trustworthy. Many companies simply do not have the qualified legal staff to do this. Others will make big promises to get your money, even if they know your offer will probably be rejected. Look for the following qualifications with any company you talk to.
- Does the company have an attorney, CPA, or enrolled agent on staff with a PTIN?
- Does the company have at least a B rating with the Better Business Bureau?
- Does the company have a good standing with the attorney general?
- Does the company ask for your financial records to make better decisions?
- Does the company make sure that you review all paperwork before it is submitted?
- Does the company communicate with clients after a case has closed?
If the answer is "no" to any of these, look into hiring a different company. You also should not work with companies that claim they can get you an IRS taxes settlement that is much lower than what you know you can collect together for an offer.
Are you wondering if filing for an IRS taxes settlement is the right option for you? Consult a professional. Call now or fill out the form below for a free tax debt consultation to find out if an IRS taxes settlement will work for you! We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.