Defining an IRS Settlement
The old saying is that there are two things for certain in life: Death and Taxes.
In the United States every April 15th most citizens over the age of 18, and all businesses are required to file an Income Tax form with the IRS.
In many cases the citizens will owe taxes and in all cases the businesses will owe taxes.
Sometimes however they do not have the money to pay these taxes and they become subject to back taxes and may require that you consider an IRS Settlement.
When the amount owed on these taxes is be very excessive to the point where wages can be garnished, property can be taken, and business licenses can be suspended or revoked it is a good idea to talk with someone about an IRS Settlement.
This is where the IRS agrees to take a smaller total tax payment to settle your account and remove all back taxes from your person or business.
Why would the IRS agree to take less that the full amount of owed taxes? This is a great question and has a pretty straight forward answer: If you owe back taxes it means you aren't paying on them at all.
Rather than getting zero tax dollars the IRS would prefer to get some of what you owe and then have you payment full on them moving forward.
Something is better than nothing and in some cases the IRS is willing to take 10 cents on the dollar as sufficient IRS Settlement terms.
In many cases the IRS settlement is dependent on you staying current on current and future tax payments.
If you falter again they can come back at you for everything that you owe.
So if you do choose to settle on your back taxes make sure you consult with a knowledgeable professional and plan on paying your taxes completely in the future.
In the United States every April 15th most citizens over the age of 18, and all businesses are required to file an Income Tax form with the IRS.
In many cases the citizens will owe taxes and in all cases the businesses will owe taxes.
Sometimes however they do not have the money to pay these taxes and they become subject to back taxes and may require that you consider an IRS Settlement.
When the amount owed on these taxes is be very excessive to the point where wages can be garnished, property can be taken, and business licenses can be suspended or revoked it is a good idea to talk with someone about an IRS Settlement.
This is where the IRS agrees to take a smaller total tax payment to settle your account and remove all back taxes from your person or business.
Why would the IRS agree to take less that the full amount of owed taxes? This is a great question and has a pretty straight forward answer: If you owe back taxes it means you aren't paying on them at all.
Rather than getting zero tax dollars the IRS would prefer to get some of what you owe and then have you payment full on them moving forward.
Something is better than nothing and in some cases the IRS is willing to take 10 cents on the dollar as sufficient IRS Settlement terms.
In many cases the IRS settlement is dependent on you staying current on current and future tax payments.
If you falter again they can come back at you for everything that you owe.
So if you do choose to settle on your back taxes make sure you consult with a knowledgeable professional and plan on paying your taxes completely in the future.
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