IRS Tax Settlement Companies & Your Key to Tax Debt Freedom
IRS tax settlement companies exist to help people get a hold on excessive tax debt. What these companies usually do is prepare an Offer in Compromise to send to the IRS on your behalf. This offer is an agreement between you and the government that you can settle your tax liability for less than you owe, and it will be considered paid in full. If you are in a real financial bind and are unlikely to be able to pay back the full amount of your tax debt, the IRS is much more likely to accept an Offer in Compromise. The amount you offer, however, must seem reasonable to them compared to what you owe and how much money you make.
The IRS wants to collect as much of what you owe as possible, and at the earliest possible time. They don’t want long, drawn-out tax collection cases. If your offer is consistent with your ability to pay, it has a higher chance of acceptance. Of course, the IRS often takes its time in coming to a decision on these matters. That’s where IRS tax settlement companies can also be of assistance. They can keep in constant contact with the IRS for you, and keep your case in the minds of the agents working on it. This will get your offer accepted (or denied) much sooner than it would otherwise.
When you supply an Offer in Compromise to the IRS, you need to give thorough documentation of your ability (or lack thereof) to pay your tax debt. If you can prove that your tax debt exceeds your ability to pay, there should be no problem. Just be aware that not every company offering you tax relief help can actually get it for you. There are a lot of commercials on TV from companies making these promises, and not all of them can deliver. Plus, almost all of them will give you the sole option of filing an Offer in Compromise, when this is not the right tax settlement option for everyone.
Some people are better off working out payment arrangements with the IRS, or a variety of other solutions. IRS tax settlement companies usually only offer you the compromise option. To know if this option is right for you, you have to find the right settlement company, and those are rare. However, there are some good ones out there, and if you know where to look, you just may be able to settle that tax debt for a reasonable amount.