Tag: Tax settlement

Facing Serious Tax Problems?- Click here to Get the Best Tax Law Attorney

If you owe the IRS a large sum of money, you may be interested in seeking a Settlement of Huge Tax Liabilities. These services advertise on television that they will reduce your tax liability, and you might even be elated. But is it really as easy as it seems? Not always. Here are 10 important rules that every lawyer and client should know. According to a tax debt attorney LA, these rules will guide you through the process, and help you get a better result.

Whether the IRS will settle your case is largely a matter of opinion. There is a small percentage of cases that end up winning. Most litigators estimate that the chances of losing a case are between ten and fifteen percent. However, these factors aren’t reflected in the way the IRS decides which cases should be settled. As long as your case has an acceptable outcome, the IRS will likely accept the settlement.

In the event that your offer is rejected by the IRS, your lawyer can work with the IRS to negotiate the terms of the settlement. While there are no guaranteed winners in these cases, many litigators estimate that there’s a ten to fifteen percent chance of losing the case. In any case, the IRS will not settle for less than what they owe. It also won’t accept offers that would be better suited for a lump sum payment or an installment plan.

While there are numerous ways to settle a huge tax liability, a 50-50 deal is the best solution. In fact, the IRS rarely ignores a settlement agreement. Although there’s no guarantee that the IRS will honor the deal, you can be sure it’s a good deal. You just need to make sure that it’s a good one. It may be worth the trouble. But it’s worth the risk.

A Settlement of Huge Tax Liabilities must be fair. The IRS may try to convince you to settle before the court, but the only way to ensure that you’ll pay less than you owe is to settle for more. If you don’t want to lose your case, consider a lower amount instead of waiting years. If the IRS rejects the settlement, it’ll simply keep pursuing it.

Once the IRS accepts your application, you can then proceed to the next step. If your tax debt is less than $25k, you may be able to go through a Payment Plan. This method allows you to request an affordable installment plan with the IRS. Another type of tax settlement involves an Offer in Compromise. This is a legal agreement between the IRS and the taxpayer, and it involves the settlement of your tax liabilities.

Guide on When to Hire a Tax Debt Attorney

In the present scenario, the IRS is ready to settle your taxes by offering a payment plan that will be suitable for both of you. The problem with many Americans is that they either do not have sufficient income to meet their tax debt requirements or, they cannot pay their debt in full because of a lack of proper planning. To overcome this problem, the government has devised a plan that can be beneficial to everyone including yourself.

Under the fresh start program, you can pay your tax debt in three easy instants. You need not worry about your credit rating and all your bad credits will be cleared. Furthermore, you will not be asked to produce any formal proof to support your reliability. This plan has made it very easy for people to clear their tax debt on time. This is a big advantage as the financial institutions are well aware that if you are a client of theirs and find yourself in the situation of not being able to pay back your loans, they will be able to use this scheme to recover at least part of their money.

 

Many taxpayers have been asking: how does one qualify for the fresh start program? The answer to this question revolves around the fact that you have to be a resident of the United States and if you owe more than seven thousand five hundred dollars as tax debt, you will be eligible for the program. There are some taxpayers who have found it difficult to pay their due but these taxpayers do not qualify for the program.

 

If you want to eliminate the tax debts, you need not pay them back immediately. Rather, you need to settle them through the means of a tax debt settlement plan. However, before you proceed, you must consult an experienced attorney who can help you in assessing your case and making the best compromises in terms of the payments. A tax debt settlement is different from a chapter bankruptcy because there are no loans required from you and the penalties will not be imposed.

 

Virginia tax debt lawyerTaxpayers can go through chapter 7 bankruptcy but there are some limitations involved which makes the process tedious. Instead of going through the process of filing for bankruptcy, you can choose the second option which is a tax debt settlement. If your case qualifies for this program, then your liabilities can be reduced by more than 50 percent. Not only will you qualify for a waiver of taxes but also enjoy many other benefits as well including monetary assistance with higher interest and longer repayment period.

 

The amount you owe as tax debt depends upon several factors such as your earnings and the total income tax owing that you have been paying. In most cases, the highest that a taxpayer can owe is about five percent of the total income earned. Some taxpayers may have been able to pay back only a fraction of the total tax that they owed but if this is the case, then the IRS will never contact them until the full payment of tax dues have been made, said Virginia tax debt lawyer. Hence, it is better to consult an attorney and discuss how to go about repaying the tax debt in the best way that will not put you in a tight situation.