Tax Negotiation

Tips on negotiating tax settlements

Settling your tax debts is important if you want to maintain a decent credit report. This is why it's important for you to get proper tax negotiation assistance particularly if the amount you owe the government is more than $10,000.

Effects to credit score

When you have tax debts it leads to tax liens and sends a red flag to potential lenders about your capacity to pay off your loans. This can keep you from securing a favorable loan offer. Outstanding balances with the IRS as well as tax liens can affect your credit history. This is because the IRS sends word to creditors when it files a tax lien against your properties to cover your tax debt. With tax negotiation assistance, you can possibly clear your record and be on your way to being tax debt free at the soonest possible time.


When it comes to tax negotiation, there are a number of strategies that you can implement. Here are a few tips on IRS tax negotiation to help you get started.

  • Defer your tax debt. If you are financially incapable of clearing your tax debts, a good course of action is to file a Currently Non Collectible status. This is a form of tax negotiation that applies to individuals and businesses that are unable to pay off what they owe the government because of economic problems such as job loss or bankruptcy. In this setup, the IRS will stop all tax collections including levies and garnishment for at least a year or until the statute of limitations to your tax debt expires.
  • Offer in compromise. In this form of tax negotiation, you offer to settle your tax debt with the IRS for a lesser amount. Having a tax professional on your side for this can serve your best purposes because he can present your case effectively with the Internal Revenue Service to prove that you are qualified for this option.
  • Pay in monthly installments. The IRS is legally required to accommodate requests from taxpayers to pay their tax debts in monthly installments. This applies particularly to individuals whose debts do not exceed $10,000. Your tax negotiation professional can pursue this particular option if you are financially capable of making the monthly payments.
  • Opt for partial payment. On the other hand, if you still can't make the monthly installments to pay the full amount of your debt, you can also negotiate with the IRS to pay less than the debt that you owe through monthly payments according to the terms set by the agency. In this setup, you will be provided with a specific time frame where in you're supposed to pay a particular amount monthly. After this predetermined schedule, any remainder tax debt will be forgiven.

Getting help

A tax negotiation expert can help you present your case with the IRS. You want to get a tax professional to help you out if your tax debts amount to more than $10,000. The tax pro can coordinate with the IRS on the most suitable payment plan for you to reasonably manage your tax debt.

Mike Habib, EA is a renowned enrolled agent with over 16 years of expertise in tax negotiation. He personally sees to the cases of his clients to ensure that they get the best resolution to their tax concerns. For a free consult, contact us through this website today.