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Negotiate the best solution for IRS debt with the expertise of a trusted tax debt attorney.
Find Out If You Qualify for Tax Debt Relief in Four Easy Steps!
Check Your Eligibility For IRS Debt Negotiation Today!
IRS debt negotiation is the process of working with the IRS to resolve outstanding tax debt through various settlement options. This process allows taxpayers to reduce their total tax liability, set up manageable payment plans, or seek relief through specific programs.
Each year, countless individuals and businesses fall behind on federal tax payments, resulting in unresolved IRS debt and increasing financial pressure. When balances remain unpaid, the IRS may initiate collection actions including wage garnishment, bank levies, and tax liens. J. David Tax Law represents clients across all 50 states in these matters with direct, attorney-led IRS debt negotiation aimed at achieving long-term resolution.
Unresolved tax liability is not just a financial issue, it’s a legal one. Without proper representation, taxpayers risk enforcement actions, escalating penalties, and long-term damage to their financial standing. Our tax debt lawyers assess your situation, determine eligibility for formal relief options such as Offers in Compromise or Installment Agreements, and engage the IRS to reduce or restructure what you owe. Learn more about our proven strategies for tax debt resolution.
Resolving IRS tax debt requires more than just intention—it requires strategy, legal compliance, and a full understanding of the available programs. At J. David Tax Law, our tax relief attorneys guide clients through each step of the process, ensuring every decision is grounded in your financial reality and federal standards. Before negotiating with the IRS, it’s critical to follow a structured approach:
We begin by confirming the total balance, including back taxes, interest, and accrued penalties. This establishes the foundation for all negotiations.
Penalties can significantly increase what you owe. We review your account to identify avoidable charges and pursue penalty abatement where justified.
The IRS evaluates your income, expenses, assets, and liabilities. We prepare detailed financial disclosures to support eligibility for resolution options.
Our team identifies which path is most viable—Offer in Compromise, Installment Agreement, Currently Not Collectible status, or other tax relief measures.
We represent you directly, submitting the necessary forms and documentation, and handling all communication to protect your rights and reach a resolution.
Free Tax Consultation
During this session, our tax attorneys will explain how debt negotiation works, potential outcomes, and answer any questions you may have.
Eligibility Evaluation
After gathering financial documents, we conduct an evaluation to determine your eligibility for IRS programs like the OIC, penalty abatement, or installment agreements.
IRS Negotiation
Our legal team handles the submission of form 656 for an offer in compromise or form 9465 for an installment agreement, as well as IRS negotiation.
Resolution of IRS Debt
After successfully negotiating with the IRS, we ensure all agreements are finalized and set up in a way that works best for you.
During this session, our tax attorneys will explain how debt negotiation works, potential outcomes, and answer any questions you may have.
After gathering financial documents, we conduct an evaluation to determine your eligibility for IRS programs like the OIC, penalty abatement, or installment agreements.
Our legal team handles the submission of form 656 for an offer in compromise or form 9465 for an installment agreement, as well as IRS negotiation.
After successfully negotiating with the IRS, we ensure all agreements are finalized and set up in a way that works best for you.
Our legal team prepares and submits the necessary forms and financial disclosures to the IRS, ensuring every detail is presented in a way that maximizes your chances of a favorable settlement.
At J. David Tax Law, we focus on one goal: helping clients resolve IRS tax debt for far less than what the government initially demands. Our tax settlement attorneys use legally recognized programs to negotiate outcomes that protect your financial future. Every strategy is guided by a full financial analysis and direct attorney involvement at every stage.
In one recent case, a client facing $1.2 million in tax liability had their Offer in Compromise denied by the IRS, which claimed they had the ability to pay in full. Our tax lawyers appealed that decision. As a result of the appeal, the IRS agreed to settle the entire $1.2 million debt for $60,300 — a reduction of over 95 percent. This outcome was achieved through disciplined legal representation and knowledge of IRS procedure.
Here is how we simplify IRS negotiations.
If one IRS resolution path does not apply or is initially declined, there are still several legal strategies we can pursue as part of the ongoing negotiation process. Here are additional options that may help move your case toward resolution:
Request an Appeal
If the IRS rejects your proposal, our IRS lawyers can file an appeal to have your case reconsidered. This allows us to present additional evidence or stronger arguments to improve your chances of success.
Apply for a New Payment Plan
Our IRS installment plan lawyer can help you apply for an installment agreement. This allows you to pay off your debt in smaller, manageable amounts and avoid aggressive collection actions.
Seek Penalty Abatement
We assist in applying for penalty abatement, which can reduce or eliminate penalties and interest that inflate your tax debt. By demonstrating reasonable cause, such as financial hardship, we can work to have these extra charges removed.
Consider Currently Not Collectible (CNC) Status
If you are facing financial hardship, we can help you apply for Currently Not Collectible Status. This temporarily halts IRS collection efforts, giving you time to recover without the pressure of immediate collections.
Offer in Compromise
We prepare and submit a first-time Offer in Compromise on your behalf, presenting a complete financial profile to demonstrate that settling for less than the full amount is appropriate based on your ability to pay.
File a Collection Due Process Hearing
If the IRS has begun collection actions like wage garnishments or liens, we can file a Collection Due Process (CDP) hearing. This gives us the opportunity to contest the collections and explore alternative resolutions.
Apply for Innocent Spouse Relief
If the debt stems from a joint return with your spouse, we can help you apply for Innocent Spouse Relief. This may absolve you of responsibility for the debt, especially if you were unaware of the tax underpayment.
The IRS debt negotiation process can vary depending on the complexity of your case and the responsiveness of the IRS. In general, it can take anywhere from a few months to over a year to reach a resolution. Factors like the type of settlement you’re seeking and how quickly you provide necessary documents can also influence the timeline.
While complete forgiveness of IRS debt is rare, it is possible to settle for less than the full amount owed through programs like the offer in compromise. However, eligibility is strict, and the IRS will only consider this option if it believes you cannot pay the full amount based on your financial situation. Reach out to our tax attorney to maximize your chances of qualifying for debt reduction.
The percentage the IRS settles for through an Offer in Compromise varies based on your financial situation, not a fixed formula. In some cases, settlements can be as low as 10 to 20 percent of the total tax debt, but approval depends on your income, assets, expenses, and ability to pay. The IRS only accepts offers that reflect what it believes it can reasonably collect.
A licensed tax lawyer is generally better suited for negotiating with the IRS, especially in cases involving legal risk, significant tax debt, or potential enforcement actions. While CPAs can assist with filings and financial records, only lawyers can offer legal representation, confidentiality through attorney-client privilege, and direct negotiation in complex tax matters.
Yes, interest on your unpaid tax debt continues to accrue while you negotiate with the IRS. Even if penalties are reduced or waived, interest will still apply until the full amount is settled. This is why it’s important to act quickly and efficiently during negotiations to minimize the impact of accumulating interest.
Yes, a tax attorney can negotiate directly with the IRS on your behalf. This includes resolving tax debt through programs like Offers in Compromise, Installment Agreements, Penalty Abatement, and other legal relief options. At J. David Tax Law, all negotiations are led by licensed attorneys, not sales staff or non-lawyer representatives. Learn more about how our IRS tax relief lawyers handle IRS tax debt negotiation.
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