How to Make a Settlement With the IRS
Even if federal taxes were deducted all year from your paycheck, you may have to pay more in April, depending on the total income you received. If you face a tax liability but can't afford it, you'll want to avoid a tax lien from the Internal Revenue Service. To do so, you'll need to reach a settlement with the IRS.
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Instructions
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If your tax liability was due to an audit, contact the IRS (see Resource) to find out who your auditor is. This IRS professional accessed your tax returns and determined what you owe, but may be able to get you a settlement. Call or email your auditor and ask for help.
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An Offer in Compromise is one method of settling taxes with the IRS. Your auditor can get you the appropriate forms to submit. (See Resource.)
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Submit your own settlement offer to the IRS. Draft it based on what you wish to pay. Fax or mail the offer to the IRS. (For contact information for your local IRS office, see Resource.)
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Contact your tax preparer if you did not file your income taxes yourself. Often, tax preparers may provide you free assistance in settling a tax liability if you used their services for filing your return. Your tax preparer can work directly with your auditor or the IRS to get the problem settled.
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Get professional tax assistance. Local services in your community, such as nonprofit agencies or attorneys that can deal directly with the IRS, may be able to help you settle so you don't have to deal with the IRS yourself.
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