At some time, you may find yourself in a situation where an IRS tax settlement needs to be negotiated. When it comes to tax settlement, you need a tax attorney to help you. Visit Defense Tax Partners at https://www.coloradotaxattorneys.net/irs-tax-settlement-fort-collins-co/ for highly skilled tax settlement lawyers. In most cases, the IRS will not initiate a settlement if you are not able to prove financial hardship. Even then, they will not initiate unless you show them a reason to do so. So what can you do when you are offered a compromise?
First, try to establish communication with the IRS so that your side of the story is heard. Second, find out what the IRS can offer you based on their current financial situation. You should know what kind of tax liability they are willing to settle for, because this will often determine whether you will get a tax settlement or a debt resolution. Finally, request a written statement from the IRS to justify any tax settlement offer that they make. It’s important that this letter includes every detail that they agree upon.
After making these arrangements, you will likely be contacted by someone from the IRS. Have everything you were advised about outlined in your communications with the IRS previously. Inform them that you have received a settlement offer and that you are reviewing it. Let them know that you are considering accepting that settlement. In most cases, they will provide a written settlement offer with conditions attached.
When you accept these conditions, you should immediately begin budgeting the tax amount that will be repaid. If you do not have the funds to repay the entire tax amount, consider borrowing against your home equity or other financial assets. If you have enough money, you can use part of it to pay off the taxes (most likely the larger chunk). If not, you should ask your tax attorney to file a pro se filing so that you will not be responsible for the debt. There are many tax attorneys that specialize in helping people who are unable to pay their taxes. They are often willing to help you out if you have a financial need.
It is important that once you have accepted an IRS tax settlement offer, you begin to cut back on your expenses. Know exactly what your monthly budget is and keep it strictly adhering to it. Once you have done so, then begin looking for ways to save as much money as possible. If you have excess funds, you should invest it to earn more interest. You may also want to consult a financial advisor or accountant for further financial advice.
It should be clear now that hiring a tax resolution specialist is not necessary. You can do the necessary research on your own. However, if you do not have the time to do this, it may be worth it to hire someone to help you with the process. You will most likely be much happier with the results if you hire someone to work on your behalf to settle your tax debts.