Successfully negotiating with the IRS to reduce the tax you owe can be complex and challenging. Nevertheless, there are some steps you can take to attempt to do so, including:
Understanding your tax situation
Before negotiating, you must have a certain level of understanding of your situation. Review your tax returns, gather all relevant documents, and determine the amount you owe to attain it.
Contact the IRS
You can call or visit a local IRS office in person to discuss your tax situation. Explain your financial situation and why you cannot pay the full amount owed. Be aware that wait times are generally long.
Reach a compromise
You may be able to settle with the IRS so that you pay them less than the full amount owed. To be eligible for a compromise, you must meet certain requirements and be able to demonstrate that you cannot pay the full amount owed.
Request an installment agreement
You may be able to enter an installment agreement plan if you cannot pay the full amount owed. With an installment agreement, you can make monthly payments towards the tax that you owe.
Remember that these are general points of advice, not specific legal advice. Consulting an
IRS tax attorney regarding your case is a sure way to get the proper direction necessary for your particular case.
Ignoring the IRS or failing to file your tax returns can bring with it severe consequences. Some include:
Penalties and interest
If you do not file your tax returns on time or outright fail to pay your taxes, the IRS can impose penalties and interest charges. These charges can add up quickly, causing your tax debt to become even more costly and challenging to settle.
Wage garnishment and bank levies
If you owe taxes and fail to pay, the IRS can use wage garnishment and bank levies to collect the money owed. Wage garnishment means that the IRS takes a portion of your wages directly from your paycheck, and bank levies seize funds from your bank account.
Property liens
The IRS may place a lien on your property, including items such as your home, car, or other assets, giving it a legal claim to your property. This would greatly affect your ability to sell or transfer it until the tax debt is fully paid.
Legal action
If you continue to ignore the IRS or outright fail to file your tax returns, the IRS can take legal action against you. This can include civil or criminal charges, resulting in more fines, penalties, or even jail time.
Damage to credit score
If the IRS places a lien on your property or takes other collection action against you, it can also damage your credit score. This can put your ability to obtain credit or loans in the future in jeopardy.
It is critical that you address any tax issues as soon as possible to avoid these risks. SG Law Group is here to help you manage your tax-related problems before they spiral out of control.
Get Started Today!
If you are in Palm Beach, Florida, and face the IRS, call on SG Law Group to be your advocate. We will develop a legal strategy to ensure you see the justice you deserve and get your financial life back on track.
