Tax Debt Settlement

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tax settlement resolution

All taxpayers that owe taxes can come to some form of tax settlement with the IRS or State, whether it be settling taxes for less or coming to an agreement on how to pay back the taxes owed. Don’t believe tax companies that promise they can settle taxes for less without knowing your detailed financial situation. If it sounds too good to be true, it likely is. Tax settlement programs exist to help those taxpayers that are financially struggling and cannot pay their taxes in full.

Great company, saved me thousands on my back taxes with the IRS & now I can sleep at nights.These guys are my saving grace. Thanks Again

-Nicholas Jones - 08/04/2020

Could not recommend Clean Slate Tax more for my tax relief! Highly knowledgeable and professional. They helped in a very difficult situation and handled it perfectly. Fees are reasonable and totally worth it.

-Julie Mccarthy - 08/03/2020

Clean Slate Tax saved me over $100,000! Not only that, they released a levy on my bank account. This company was worth every penny! I would suggest using them. Their professionalism, personal touch, availability and communication were remarkable. USE THEM!

-Josefina Mason - 08/01/2020

Joe is the absolute BEST!! He is very knowledgeable, helpful, compassionate, friendly, and very easy to talk to. Everyone at Clean Slate that I talked to was so understanding and nice. They made me feel comfortable sharing very private financial issues that I have a hard time talking about. They were very patient with me paying them for their services. I could not have asked for a better company! (...)

-Julie Hebert - 07/05/2020

From the first contact with Clean Slate to my final day EVERYTHING was transparent, professional and incredibly friendly, straight forward and honest.
No false promises and they kept us in the loop all the time. They promised no more than they could deliver and delivered everything they set out to do.
A pay garnishment and HUGE tax burden was lifted and settled, as they had originally planned.

-R Perreault - 02/05/2020

I’m sure that the good folks at Clean Slate had heard it before....but for me, it was true....it was an accident. That I didn’t file tax returns for 5 years. 2 family members, the 2 I loved the most, and the longest, passed within a year of each other, and it broke me. For the next 4 years. Every time I sat to do my returns, my mind went dead. And along the way, I had been hearing so many ads, “Got a tax problem? Call us”(...)

-Bernadette Spade - 12/10/2019

How Our Tax Settlement Service Works

We strive to find the best tax settlement option for our clients after we review their tax transcripts and their financial situation. The IRS and State taxing authorities do have strict guidelines as to who will qualify for these programs and we will determine which one fits your situation the best. Below is a basic outline of how our tax settlement process works in order to get you the best tax deal.

How To Stop It

Step 1: Consider Possible Reduction of Assessed Taxes

Before we begin on a final resolution our tax team will analyze your tax records to see if your tax amount can be reduced. It is common for our clients to receive IRS and state taxation letters with tax balances due that are erroneous. In some cases, the taxing authorities will file a substitute for return (SFR) for you. SFR’s generally minimize tax deductions and omit tax credits resulting in a much higher tax bill. Other situations arise, out of control of the taxpayer, which leads to noncompliance with tax laws. Fortunately,  in many cases, taxing authorities will waive the penalties that were assessed. Below are some of the services we offer for the initial reduction of taxes owed.

  • Amending Tax Returns: If there were errors on your past returns, missed credits and/or deductions, or the tax authorities filed a substitute return for you, we can file an amended tax return for the particular year or years. If the IRS or State accepts the return,  this can reduce the overall tax bill. This will also reduce the amount of penalties and interest accrued as well.
  • Penalty Abatement: If you have a “good enough” reason for not staying in compliance with tax laws, then there is a good chance that penalties may be removed or reduced. Penalties can add a significant amount to a tax bill that is overdue and penalty abatement may significantly reduce that balance.
Step 2: Consider a Final Resolution Method

When we have arrived at a final tax balance owed, we will begin analyzing your financial and tax situation. Depending upon your monthly expenses, the tax amount owed and other financial considerations, we will determine the best resolution method to get back into full compliance with tax laws. Below are some of the resolution methods we will consider for your case.

  • Offer in Compromise: This is a program offered by the IRS and some states to help struggling taxpayers that have a small chance of ever paying off their taxes owed without enduring significant financial hardship. With this program, the IRS or State will accept a smaller amount than the total amount of taxes owed in a lump sum or over a few payments.
  • Innocent Spouse Relief: This isn’t necessarily a settlement, but it does wipe the tax liability clear of one individual and pass it to another. When married couples file a joint tax return they are both equally liable for any taxes that are owed. The IRS and some states realize that it isn’t always fair to hold one party liable for the tax liability. If this is the case for you, the liability may be shifted 100% or mostly to the other spouse or ex-spouse.
  • Partial Payment Installment Agreement: This program allows individuals to make smaller monthly payments than are required with a regular installment agreement (mentioned below). This option is for the struggling taxpayers that would endure financial hardship if they were required to pay the full amount required under a normal payment plan. Typically, with this type of agreement an individual ends up paying less than the total amount of taxes due because the statute of limitations on the debt expires before it is paid off in full.
  • Currently not Collectible: This option puts a hold on tax collection activities. If a taxpayer does not have enough funds to make payments towards the debt the taxing authorities will wait until their financial situation improves before collecting. At times, the statute of limitations on the debt expires before the taxes are paid and the tax debt is forgiven.
  • Installment Agreement: If you can afford a manageable monthly payment, we can enter you into an installment agreement with the IRS and/or the State to pay back the taxes owed. Once entered into this type of agreement you are considered to be in compliance with your taxes and it stops penalties from being assessed (interest still applies).

Our tax professionals will work to get you the best possible outcome by reducing your taxes owed (if possible) and then determining the best resolution method to use. We specialize in dealing with complex tax problems and use some of the best financial and tax modeling software available to help determine the best way to resolve your tax problem.