How to Get an IRS Settlement
Each year when you file your income taxes, there is a possibility that you will not get a refund, and may even have to pay more in taxes because of improper filings or failure to pay taxes through payroll deductions. If you do not pay the debt immediately, it may begin drawing interest and penalties, which can cost you even more money. If you do owe the IRS more money after filing your taxes, you may be able to settle the debt by only paying a portion of the taxes owed.
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Instructions
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Respond to the IRS promptly. If you respond to all correspondence from the IRS quickly, they may be willing to help you by settling the debt if you do not have the means to pay it in full. If you do not respond promptly to IRS correspondence, they may feel you are trying to avoid paying the debt. If so, they may be less willing to settle the debt with you later.
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Submit an offer in writing. If you owe the IRS taxes, you may develop a proposal in writing of an amount you are willing to pay to settle the IRS debt. You can then submit it to them by sending it through mail or visiting a local office. You can find a local IRS near you at www.irs.gov. After the IRS receives it, they may accept or reject it and advise you of their decision.
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Call the IRS. You can advise the IRS that you do not have the funds available to pay the debt in full. The IRS has a variety of repayment options that can accommodate your budget. The IRS may extend an Offer in Compromise to you, which is an agreement between you and the IRS regarding flexible payment terms. To ensure they get their money, the IRS may offer you a lump-sum payment or a settlement at a higher discount than repaying the taxes owed monthly. You can decide which repayment option is best for you.
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Contact a tax professional. You can find tax relief services on the Internet by searching Google. You may also be aware of attorneys in your area who specialize in tax settlement. You may have more success getting a settlement with the IRS if you use a tax professional because they know how to contact the IRS, as well as how to negotiate with them.
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