Is it Bad to Settle With the IRS?

You may have heard on the radio, T.V., and online, that you can settle your tax bill for less than what you owe. But are these claims really true? And can you settle your tax debt without hurting yourself in the long run?

Some of the national tax resolution firms you hear advertising offer minimal service, take a look at their Google and Yelp Reviews. So, it’s essential to know who you can trust and educate yourself on what your options are available to resolve your tax problem.

SFS Tax Problem Solutions is a specialty tax resolution firm. We encourage all of our readers that are facing a tax problem or know someone that is to contact us for a complimentary consultation.

The truth is that it’s often way more complicated than these big companies claim to negotiate a settlement for less than you owe the IRS, but it is possible. You must first learn if you qualify for the program. The program is known as an “offer in compromise,” but settling is not necessarily a bad thing.

An “offer in compromise” is a negotiated settlement between the taxpayer and the IRS that is intended to help taxpayers who owe more than they can pay. In many cases, you can settle your entire tax bill for a fraction of what you owe, if you qualify. You can only qualify if you genuinely can’t afford to pay back taxes or if doing so would cause extreme hardship. (i.e., if you have become disabled).

You also must be current on all legally required income tax returns and any estimated tax payments that you are required to make if you are self-employed. Nor can you be filing for bankruptcy.

The IRS would prefer to take an offer in compromise than send you to collections and potentially get less money. Taking an offer in compromise will NOT affect your credit score. Having your offer in compromise accepted is a far better financial decision in the long run.

However, working out what offer to make on your own and learning the whole process can be extremely challenging. That’s like representing yourself in a court of law without a lawyer. Not smart. A better answer is to find a tax resolution specialist that can help you with the process to see if you qualify and determine what you will have to pay. A CTRS, Certified Tax Resolution Specialist tax resolution specialist will also be a licensed CPA, Enrolled Agent, or an Attorney.

One of the benefits of working with a qualified and local tax resolution firm is that you get protection from the overbearing IRS. Whereby you will sleep better at night knowing you’re on your way towards a permanent tax solution. Additionally, the tax resolution expert can head-off any impending garnishments of your paycheck or levies on your bank account.

Settling with the IRS is a good thing and is often the best answer to dealing with your back-tax bill and moving on with your life.

If you want an expert tax resolution professional who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to resolve your tax problem permanently.

Call the office at 877-355-8010, book your appointment online, or email Marissa at to set up your appointment.







Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax Problem Solutions as well as an Enrolled Agent, a Certified Tax Resolution Specialist and Advanced Crypto Tax Expert.
Author of the Now What? Help! series, Jeff defines and deconstructs IRS notices and clarifies letters and actions the IRS will take to get what they want. He interprets the world of the IRS in a fashion that mixes attention to detail with humor to help you better understand and resolve your tax problems.

The books are available in paperback and eBook on Amazon.
For more on SFS Tax Problem Solutions, visit
738 Colorado Avenue Stuart, FL 34994
Phone: 877-355-8010