How Much Will the IRS Settle For?
When you fall behind on your taxes, it’s possible for your bill to grow past what feels like a point of no return. It could take you years to pay off that tax bill, and you could become financially ruined in the process. Luckily, there are ways to pay off tax liability that you may not know about.
For instance, you could be able to settle your tax bill for less than the full amount of taxes owed. This is often called an offer in compromise. There are some requirements for eligibility, so it’s a good idea to talk to a lawyer to see if you’re eligible. In these cases, you may be wondering, “How much will the IRS settle for?”
That’s obviously a question that is answered on a case-by-case basis, but let’s look at what affects your settlement.
IRS Offer in Compromise Details
The offer in compromise is a settlement option the IRS offers to select taxpayers. This option is not for everyone, and you have to apply with the IRS and get them to agree to a settlement offer. The IRS examines many factors about your financial status to decide whether they will settle your tax bill.
- They will examine your total household income.
- They will look at the full amount of tax liability you owe.
- They will look at your living expenses and other liability.
- They will consider personal factors.
- They will check to see that you qualify (those in bankruptcy or who have unfiled returns are not eligible).
Once they’ve closely analyzed your situation, they will then accept or deny your settlement offer. They do accept a fair number of settlements, so there is a good chance they will accept yours if you meet the eligibility requirements and the offer is reasonable.
Talk with a Tax Lawyer to See if You Qualify for a Settlement Option
We can’t tell you exactly how much will the IRS settle for, because every person’s tax situation is unique. But you can see that settlement is possible with the right lawyer on your team. Call The W Tax Group at 1-877-500-4930 or complete the online submission form at the bottom of this page to speak to an IRS lawyer now.