When it comes to debt negotiation, many people think they only have the option of working with credit card companies. However, even the IRS is willing to go through debt negotiation with you! Just like any other creditor, the IRS would prefer to get something rather than nothing. And, if you show good faith in repaying the IRS back taxes that you owe, the IRS will work with you.
Why You Should File
The one catch here is in the key phrase: IRS back taxes. You must have actually filed your taxes with the IRS in order to qualify for one of their programs (e.g. Offer in Compromise or partial payment agreement). If you never filed your taxes in the first place, you’ll find that debt negotiation will be extremely difficult to do. The IRS doesn’t look fondly upon those who never bothered to file.
If you did file, but still owe the IRS back taxes, various debt negotiation strategies are available to you! Filing is key. Even if you don’t think you’ll be able to pay your taxes, if you at least file you will put yourself in a better position than someone who doesn’t file. After all, the IRS will come to collect one way or another. You at least want to be on their “good side” by having filed.
Contact us if you have any further questions about debt negotiation strategies with the IRS. We know that good people sometimes mess up. Also, life’s unforeseen circumstances can ruin all kinds of plans, including your plan for paying your taxes.