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What Are Your IRS Negotiation Options?

Blog | Uncategorized
January 18, 2024

What Are My IRS Negotiation Options?

You owe money to the IRS. What can you do? 

There are several possible solutions. 

  • Offer in Compromise
  • Installment Agreement
  • Partial Pay Installment Agreement
  • Currently Not Collectable
business man discussing tax levy

What are these options and how do they work? 

First, Offer in Compromise. This is where you file a specific form with the IRS and attempt to get the IRS to settle for a lesser amount. Generally, Doubt as to Collectability is used the most. It takes considerable time to analyze your financial circumstances to see if you qualify. It is very difficult to get the IRS to approve this if you do it yourself. You need to provide extensive financial documentation. This is not a do-it-yourself project, nor can it be prepared by a few minutes  of  phone conversation

Another possibility which is easier to get approved is the Installment Agreement. In this arrangement you agree to full pay the IRS balance over a period up to 72 months if possible. You may have to file financial information with the IRS to get it approved depending on the amount you owe and the time frame to pay it off. This again is not a do-it-yourself project as it is very easy to make an error. Once the installment agreement is approved it is important not to continue accumulating IRS balances each year, so tax planning is vital here.

This brings us to what is called a Partial Pay Installment Agreement.

This is where you can’t economically full the IRS in an installment agreement. You simply cannot afford it. Therefore, you need to prove to the IRS you can only afford to pay a certain amount each month. You also need to prove you do not have the assets available to pay the IRS off in full. There are certain expenses that the IRS will allow and some they will not. It takes considerable skill to prepare one of these, so you need a qualified Tax Resolution Specialist to prepare this for you. 

The final option is called Currently Not Collectable. This is when the IRS decides you can’t pay anything. The IRS then basically gives up on collecting from you. This again is very difficult to prove and takes considerable expertise to do this. You will need to supply financial information to the IRS. It once again takes considerable skill to do this, so you need to a qualified Tax Resolution Specialist to assist you. Many times, an appeal is needed to the IRS manager to get this approved. 

You need qualified representation and Philip Garnett Tax Resolution is highly experienced at dealing with the IRS. We are a Certified Tax Resolution Specialist, and this is your best plan is to hire someone to help you with the proper credentials. Contact us today, give us a call at 360-623-1375!

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