In this article, you can discover:
- Failure to resolve IRS tax issues can lead to serious consequences like wage garnishment and a drop in your credit score.
- Not everyone will qualify for an Offer in Compromise, but anyone can apply if they can provide satisfactory proof of inability to pay or dispute the claimed debt.
- Hiring a professional tax attorney can help you navigate IRS tax settlements more effectively, saving time and potentially reducing stress.
What Happens If I Don’t Resolve My IRS Tax Issues?
If IRS tax issues remain unresolved, you could face serious consequences. These may include asset or wage garnishment, credit liens that affect your credit score, or even revocation of your passport if your debt is over $50,000. Resolving IRS debt is crucial to avoid these complications.
Can Anyone Qualify For An Offer In Compromise?
While anyone can apply for an Offer in Compromise, not everyone will qualify. To qualify, you either need to have a valid dispute about the tax debt owed, backed by substantial evidence, or demonstrate to the IRS that you are unable to pay the debt.
What Is A Partial Payment Installment Agreement?
A Partial Payment Installment Agreement allows you to make partial payments of your tax debt based on your ability to pay and the Collection Statute Expiration Date (CSED). The CSED is a 10-year period during which the IRS can collect on the debt. If the debt’s CSED is approaching, you might only pay a portion of the debt, with the IRS reevaluating the remainder.
How Long Does It Take To Settle A Tax Debt With The IRS?
Settling a tax debt with the IRS varies in length. It could take a few months to over a year, depending on various factors like the IRS agent’s availability and the time it takes to process the provided information. While tax lawyers can speed up their part of the process, the timeline largely depends on the IRS.
Should I Always Hire A Tax Attorney To Help Me With An IRS Tax Settlement?
Hiring a tax attorney is a personal decision but is generally recommended to give yourself the best chance of success. Tax attorneys, as professionals who deal with these situations regularly, can help you navigate IRS tax settlements more effectively than attempting it for the first time on your own. Despite the associated costs, the time and stress saved often outweigh the expense.