Can an individual or business negotiate tax debt with the Internal Revenue Service?

Yes, the amount of tax debt as well as the timing of the payment of debt are regularly negotiated with the IRS. These negotiations however, are not as simple as you often hear or read in advertisements that offer to settle your debt “for pennies on the dollar”. What often happens when people pay companies making these claims up front is the company later comes back saying you did not qualify for the offer in compromise they were working on, and then try to get more money from you to try to work out an installment agreement with the IRS.

When entering into an IRS negotiation, it is best to think of it as a business negotiation, as the IRS will generally only enter into an agreement when they believe it is in their best interest. Think about it…why would the Internal Revenue Service voluntarily give up their right to collect money you legally owe them if you have the ability to pay the debt? There are however situations where you may be able to show the IRS that it is better to accept some payment now rather than risk collecting nothing later. It is also possible to negotiate a settlement for an installment agreement or even have your account placed in a currently not collectible status, depending on your individual situation. You may also be able to work with the IRS to have the penalties related to this debt reduced or eliminated.

Remember that if you are considering using the services of a professional, it is impossible for them to quote you a fair price or make any assurances as to results, until they understand your unique situation. Therefore do not pay money unless you are confident the professional has taken the time to familiarize themselves with your individual situation.

At we offer a totally free no obligation consultation to familiarize ourselves with your situation before we make any recommendations or quote any fees for our services. Call 1-800-408-3122 for your no obligation consultation, or email us at . We look forward to speaking with you.

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