Understanding the Different Types of Tax Relief Under an IRS Tax Settlement

No one really looks forward to receiving a notice from the Internal Revenue Service (IRS) regarding unpaid taxes, but it is a reality that many people face every year. Most people fear dealing with the IRS because of the perceived power they hold and the belief that they don’t have any rights. However, as a taxpayer, you do have rights when negotiating a tax settlement with the IRS. Knowing your rights can help you navigate the process effectively and reach a fair agreement with the IRS. In this blog post, we’ll discuss the most essential rights you have when dealing with the irs installment agreement payment.

1. Right to Representation – When dealing with the IRS during a tax settlement, you have the right to representation, either by yourself, an attorney, or an enrolled agent. An enrolled agent is a professional who is authorized to represent taxpayers before the IRS. Having someone represent you during a tax settlement can help you understand the terms and conditions of the agreement and negotiate the best terms for you.

2. Right to Privacy – Your tax information is highly confidential, and the IRS cannot disclose it to anyone without your permission. You have the right to privacy, and any information you share with the IRS during a tax settlement negotiation cannot be disclosed to third parties.

3. Right to Appeal – If you disagree with the decisions made by the IRS regarding your tax settlement, you have the right to appeal. You can challenge the settlement in court, and the IRS has to provide you with a fair hearing. During the appeals process, the IRS must provide you with all the documentation used to make their decision.

4. Right to Finality – The IRS has to provide you with a clear explanation of the terms and conditions of the tax settlement once you have agreed to it. You have the right to understand the agreement fully before signing it, and the IRS has to provide you with a copy of the agreement.

5. Right to Pay Only What You Owe – It’s important to understand that you only have to pay what you owe in taxes. The IRS cannot ask for more than what you owe, and they cannot ask for payment before you reach a settlement agreement. If you owe back taxes, the IRS has the right to charge penalties and interest on the unpaid balance.

Knowing your rights when dealing with the IRS during a tax settlement can make the process less daunting. You have the right to representation, privacy, appeal, finality, and to pay only what you owe. It’s important to remember that the IRS must follow specific rules and regulations when negotiating a tax settlement, and you have the right to challenge any decisions made by them. If you’re facing a tax settlement with the IRS, it’s best to seek the help of an experienced tax professional who can ensure that your rights are protected and help you reach a fair agreement.