Tax Settlements

How to settle your tax debt

It's easy to find yourself in trouble with the IRS, considering how complex and continuously changing the US tax code is. When financial disaster strikes, IRS payments may be part of your debt load. With the help of a local, specialized tax attorney, you may be able to work out an IRS settlement.

A tax settlement is an agreement you reach with the IRS to pay current and back taxes through one of the IRS's programs. These programs are based on individual situations and require the taxpayer to be fully compliant with their tax obligations. To be considered compliant, typically the taxpayer must have all past and present tax returns filed and keep current with all on-going payments. Further, the IRS will require tax returns for the past six years (or longer, depending on the case).

If the IRS discovers any anomaly in your case, such as dissipated assets - assets sold just prior to requesting a settlement - they may deny your request for a settlement. Dissipated assets are regarded as assets which could've been sold and used to pay overdue tax debt.

IRS Tax Settlements

  • Offer in Compromise - a settlement agreement where the IRS accepts less than full payment. This happens rarely and must meet certain criteria. Generally speaking, you must prove you either don't actually owe the debt or that you will never be able to pay the full amount owed. For more information about Offer In Compromise please visit

  • Currently Not Collectible Status - occurs when a person is behind in payments and has no ability to pay - such as in undue hardship cases.

If you find yourself unable to pay your taxes, and need legal assistance, contact a Tax Attorney near you to discuss which tax settlement option might be right for you.

Tax Term of the Day

Married Filing Separately

Married Filing Separately is one of the five filing statuses the IRS and state taxing authorities use in calculating a taxpayer\'s tax liability

Category: Tax Law

Latest Tax Question

Who has to file a federal income tax return?

Primarily, whether an individual has to file a federal income tax return depends mainly on the individual\'s age, filing status, and the amount and type of income received by the individual.

Category: Tax Law

Share this page with a friend