Negotiating with the IRS on Back Taxes: 10 Common Legal Questions Answered

Question	Answer
1. Can I negotiate with the IRS to lower the amount of back taxes I owe?	Absolutely, it is possible to negotiate with the IRS to lower the amount of back taxes you owe through an Offer in Compromise or an Installment Agreement.
2. What is an Offer in Compromise and how does it work?	An Offer in Compromise is a program that allows taxpayers to settle their tax debt for less than the full amount owed. It`s a complex process but can result in significant savings if successful.
3. Can I negotiate with the IRS if I can`t afford to pay my back taxes in full?	Yes, the IRS offers various payment options for those who cannot afford to pay their back taxes in full, including payment plans and hardship programs.
4. Is it possible to negotiate with the IRS on penalties and interest added to my back taxes?	Yes, it is possible to negotiate with the IRS to reduce or eliminate penalties and interest on back taxes through penalty abatement or other relief programs.
5. What is the best approach to negotiating with the IRS on back taxes?	The best approach to negotiating with the IRS on back taxes is to seek the assistance of a qualified tax attorney or CPA who can navigate the complex processes and advocate for the most favorable outcome.
6. Are there any risks or consequences to negotiating with the IRS on back taxes?	While there are risks involved, such as potential rejection of offers or increased scrutiny, the benefits of pursuing negotiation can often outweigh these risks when handled properly.
7. Can I negotiate with the IRS if I have unfiled tax returns for previous years?	Yes, it is possible to negotiate with the IRS even if you have unfiled tax returns from previous years, but it is advisable to consult with a tax professional to address any outstanding filing obligations.
8. How long does the negotiation process with the IRS typically take?	The negotiation process with the IRS can vary in duration depending on the complexity of the case, but it can range from several months to over a year in some instances.
9. Can I negotiate with the IRS on back taxes if I am currently facing financial hardship?	Absolutely, the IRS has programs in place to assist taxpayers facing financial hardship, and negotiating with the IRS on back taxes can often provide relief in these circumstances.
10. What are the key factors to consider before negotiating with the IRS on back taxes?	Before negotiating with the IRS on back taxes, it is important to consider the potential benefits, risks, and available options, as well as seeking professional guidance to navigate the process effectively.

 

Can You Negotiate with the IRS on Back Taxes

Dealing with back taxes can be a stressful and daunting task. However, there is a glimmer of hope for taxpayers who are struggling to pay their tax debt – negotiation with the IRS. The process of negotiating with the IRS on back taxes can seem intimidating, but it is possible to reach a resolution that works for both the taxpayer and the IRS.

Understanding the Options for Negotiation

When it comes to negotiating with the IRS on back taxes, there are several options available. These include:

Option	Description
Offer Compromise	This option allows taxpayers to settle their tax debt for less than the full amount owed.
Installment Agreement	With an installment agreement, taxpayers can pay off their tax debt in monthly installments.
Currently Not Collectible	If a taxpayer is unable to pay their tax debt due to financial hardship, they may qualify for currently not collectible status.

Success Stories

There have been numerous successful negotiation cases with the IRS on back taxes. For example, in 2020, the IRS accepted 17,388 offers in compromise, resulting in a total of $106.4 million accepted offers. This showcases the potential for taxpayers to successfully negotiate their tax debt with the IRS.

Seeking Professional Help

While it is possible for taxpayers to negotiate with the IRS on their own, seeking professional help can greatly increase the chances of success. Tax professionals have the knowledge and expertise to navigate the complex process of negotiating with the IRS and can advocate on behalf of the taxpayer.

Negotiating with the IRS on back taxes is not only possible but can also lead to a favorable resolution for taxpayers. Understanding the available options for negotiation and seeking professional help can greatly improve the chances of success in reaching a resolution with the IRS.

 

Negotiating with the IRS on Back Taxes Contract

This contract is entered into between the Taxpayer and the Internal Revenue Service (IRS) to establish the terms and conditions under which the Taxpayer may negotiate on back taxes owed to the IRS.

Article 1 – Parties
The Taxpayer, hereinafter referred to as “Taxpayer”, and the Internal Revenue Service, hereinafter referred to as “IRS”, agree to the terms and conditions set forth in this contract.

Article 2 – Negotiation Process
The Taxpayer may request to negotiate with the IRS on back taxes owed. Such negotiation shall be conducted in accordance with applicable tax laws, regulations, and IRS procedures.

Article 3 – Legal Representation
The Taxpayer may choose to be represented by a qualified tax attorney or certified public accountant during the negotiation process. The IRS reserves the right to communicate directly with the Taxpayer or their authorized representative.

Article 4 – Terms Agreement
The terms of any agreement reached through negotiation with the IRS on back taxes shall be binding and enforceable in accordance with applicable tax laws and regulations.

Article 5 – Governing Law
This contract and any negotiation or agreement with the IRS on back taxes shall be governed by the laws of the United States and the relevant tax regulations and procedures established by the IRS.

IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.