Structuring an IRS settlement can be tricky business especially if you have never dealt with one before.
The IRS has ways of making sure they always have the advantage but it doesn't have to be that way.
Remember, you are a taxpayer and you have rights too.
Don't let the IRS trample all over those rights just so they can take more and more of your money.
There are many ways you can get a favorable IRS settlement it just takes a little education and initiative to ensure you get the right deal.
There are some things to consider when structuring your IRS settlement and you need to understand it's a bit different for every situation.
One thing you may want to consider is a two pronged approach.
If you can get your tax debt declared uncollectible the IRS must stop all collection activity and re-evaluate your financial situation.
This can take years.
The government moves like molasses in January unless they see an opportunity to leap.
While they are figuring out your situation the statute of limitations could run out and you could be in the clear.
The statute of limitations is 10 years in most cases after which the IRS has no claim against you.
And, of course one of the most popular methods of dealing with an IRS settlement is to arrange the best possible settlement amount and pay it in full or go on a partial payment plan.
If you do this the IRS cannot attach any of your assets and as long as you keep up the payments, you will have no more issues with them.
You can also make an offer in compromise in which case you really want to consult a tax expert to review your options.
That is where dealing with the IRS can be tricky.
There is one thing to remember when making the decision to seek a settlement with the IRS, start dealing with it as soon as possible.
The IRS can be scary but delaying actually dealing with them can cost you dearly.
If you delay, the IRS can assess late fees, interest and penalties which can increase your debt to them immeasurably.
They can also begin more draconian tactics like attaching property with liens or garnishing your wages.
Avoid that at all costs.
And, you should consider having a professional analyze your financial situation and have them make the appropriate settlement offer on your behalf.