Technically, we all owe money to the IRS in the form of our annual taxes. Some of us, though, owe money in a more unconventional way. This typically comes in the form of fees, penalties, or unpaid taxes that we should have paid already.
If the IRS has contacted you about an outstanding payment, don’t panic— there are ways you can work with them.
So, can you negotiate with the IRS? You can! Let’s take a look at everything you need to know.
Ask to Delay Your Collection
This is one of the best routes to take if you find that you owe the IRS money in the form of back taxes. Although the Internal Revenue Service is known for relentlessly pursuing those who haven’t paid their taxes, you may be able to request a delay.
This is typically only applicable if financial hardship is a factor. With the impact that COVID-19 has made across the entire world, though, it’s not unlikely that you might be in a situation where your money is together than ever before.
It’s important to note here that you should be as honest as possible with the IRS. Acknowledging your debt is far more favorable as opposed to claiming you didn’t know you owed money, you thought you had already paid the appropriate amount, etc.
Enter an Installment Agreement
If you can’t get out of paying immediately, you may be able to enter into an installment agreement. As the name suggests, this involves making long-term payments on your taxes instead of needing to pay them immediately.
If your debt has interest on it, though, remember that you’ll end up paying a bit more over a longer period of time. On particularly high amounts, this can sometimes be difficult to accommodate.
Pay One Lump-Sum Instead of Long-term Payments
Sometimes, the IRS will impose fees and penalties on those who owe money in the form of back taxes. Depending on how long you’ve owed the money, how much you’re required to pay, etc., you might find that you need to avoid these fees at all costs.
Fortunately, those who pay their debt all at once are often able to minimize the extra money that they’ll need to hand over. The faster the IRS is able to get their money, the less likely they are to impose a significant financial burden on those who owe them money.
You can visit this resource for more information on how to deal with IRS back taxes owed.
Can You Negotiate With the IRS in Other Ways?
Maybe, depending on your situation.
In general, though, the above answers to ‘can you negotiate with the IRS’ are the best routes to take, and this information will make the process far smoother. From here, you’ll be able to ensure that you make the decision that’s best for you.
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