If you owe the IRS a large sum of money, you may be interested in seeking a Settlement of Huge Tax Liabilities. These services advertise on television that they will reduce your tax liability, and you might even be elated. But is it really as easy as it seems? Not always. Here are 10 important rules that every lawyer and client should know. These rules will guide you through the process, and help you get a better result.
Whether the IRS will settle your case is largely a matter of opinion. There is a small percentage of cases that end up winning. Most litigators estimate that the chances of losing a case are between ten and fifteen percent. However, these factors aren’t reflected in the way the IRS decides which cases should be settled. As long as your case has an acceptable outcome, the IRS will likely accept the settlement.
In the event that your offer is rejected by the IRS, your lawyer can work with the IRS to negotiate the terms of the settlement. While there are no guaranteed winners in these cases, many litigators estimate that there’s a ten to fifteen percent chance of losing the case. In any case, the IRS will not settle for less than what they owe. It also won’t accept offers that would be better suited for a lump sum payment or an installment plan.
While there are numerous ways to settle a huge tax liability, a 50-50 deal is the best solution. In fact, the IRS rarely ignores a settlement agreement. Although there’s no guarantee that the IRS will honor the deal, you can be sure it’s a good deal. You just need to make sure that it’s a good one. It may be worth the trouble. But it’s worth the risk.
A Settlement of Huge Tax Liabilities must be fair. The IRS may try to convince you to settle before the court, but the only way to ensure that you’ll pay less than you owe is to settle for more. If you don’t want to lose your case, consider a lower amount instead of waiting years. If the IRS rejects the settlement, it’ll simply keep pursuing it.
Once the IRS accepts your application, you can then proceed to the next step. If your tax debt is less than $25k, you may be able to go through a Payment Plan. This method allows you to request an affordable installment plan with the IRS. Another type of tax settlement involves an Offer in Compromise. This is a legal agreement between the IRS and the taxpayer, and it involves the settlement of your tax liabilities.