What to Expect
During the settlement negotiation, a state tax expert will:
- Facilitate payment options, which includes making arrangements for a payout agreement, if warranted
- Negotiate the waiver of penalties and interest, which is more likely to occur if you can pay the entire tax assessment in a single, lump-sum payment
- Offer additional options, if you are charged with fraud
If Texas Tax Group and the client agree with the assessment, but funds are not immediately available, you can apply for a 24- to 48-month interest-free payment plan, which is often obtained. In some instances, Texas Tax Group attempts to have certain penalties waived in exchange for a lump-sum payment of the audit liability.
Attending an administrative hearing is rarely necessary to obtain settlement action. Instead, most Texas Tax Group settlements are typically resolved when one of the following is issued:
- Settlement and compromise agreement
- Motion to dismiss issued by the assigned hearings attorney
At Texas Tax Group, our above-average pre-hearing settlement rate occurs largely because we know and understand the agency’s unwritten policies related to settlement negotiations. To begin the process, you must first apply for and obtain approval for an administrative hearing. From there, Margie Merwin, the settlement coordinator at Texas Tax Group, will negotiate the best settlement option based on the audit liability and your ability to pay it.
Unfortunately, the settlement process is a lengthy administrative hearing that costs both you and the agency time and money. For this reason, it’s in everyone’s best interest to agree on a settlement – if that’s what you prefer. If, however, the case proceeds further due to unresolved differences, our director of administrative hearings, Jeff Jansen, is prepared to take the case to trial.