A settlement demand letter to the Internal Revenue Service (IRS) is a written document that requests a resolution to a tax dispute between a taxpayer and the IRS. The letter outlines the taxpayer’s position and demands a settlement or compromise agreement.
If you are considering submitting a settlement demand letter to IRS, here are some key elements that you may want to include:
1. Your contact information:
Include your name, address, phone number, and email address.
2. Identification information:
Provide your taxpayer identification number (TIN), which is usually your Social Security number.
3. Explanation of the circumstances:
Clearly state the reasons why you are requesting a settlement and provide a detailed explanation of the circumstances surrounding your tax debt.
4. Supporting documentation:
Include any documentation that supports your request, such as financial statements, receipts, or other records.
5. Proposed resolution:
Outline the settlement proposal you are seeking and explain how it will resolve your tax liability.
6. Amount of Offer:
Include a specific amount you are offering to pay the IRS.
7. Basis of Offer:
Explain the basis of your offer, including the method used to calculate the offer amount.
8. Ability to pay:
Describe your current financial situation, including your income, assets, expenses, and debts. Be sure to explain how your financial situation prevents you from paying your full tax debt.
9. Legal justification:
Provide any legal or factual arguments that support your request for a settlement.
10. Contact information for your representative:
If you are working with a tax professional or representative, include their contact information.
Remember that the IRS receives many settlement demand letters, so it is important to be clear, concise, and professional in your communication. Be sure to provide all relevant information and documentation to support your request, and be prepared to negotiate with the IRS if necessary.