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How Can You Negotiate with the IRS for Back Tax Payments?

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Negotiation with the IRS can be a daunting task, but it is possible to work out a payment plan for back taxes owed. Here are some steps you can take to negotiate with the IRS for back tax payments:

Gather your tax records: Before negotiating with the IRS, it’s important to gather all your tax records and understand how much you owe. Review your tax returns for any errors and make sure all deductions and credits are included.

1. Contact the IRS:

Contact the IRS and explain your situation. Be honest about your ability to pay and ask for a payment plan that works for you. The IRS may ask for financial information to determine what type of payment plan you can afford.

2. Consider a proposal to negotiate:

An Offer in Compromise is an agreement between you and the IRS to settle your tax debt for anything less than the complete amount owed. This option is only available in certain circumstances, so be sure to speak with a tax professional to determine if you qualify.

3. Review your options:

The IRS offers several payment plans, including installment agreements and temporary delays. Review all your options and choose the one that works best for your financial situation.

4. Follow through on your payments:

Once you have negotiated a payment plan with the IRS, it’s important to follow through on your payments. If you miss a payment or default on your agreement, the IRS may take collection action against you.

In conclusion, negotiation with the IRS for back tax payments can be a challenging process, but it is possible to work out an agreement that fits your financial situation.

Be honest about your ability to pay and consider all your options before choosing a payment plan. It’s important to follow through on your payments and communicate with the IRS if you encounter any issues along the way.

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