Tax Settlement
/ˈtæks ˈsɛtlmənt/
Definitions
- (n.) An agreement between a taxpayer and a tax authority resolving a dispute over tax liabilities, often involving payment of a negotiated amount less than originally claimed.
The taxpayer reached a tax settlement with the IRS to avoid lengthy litigation.
- (n.) The final resolution or discharge of a tax debt through payment, compromise, or legal agreement.
The company completed the tax settlement by paying the agreed sum to the state revenue department.
Forms
- tax settlement
- tax settlements
Related terms
See also
Commentary
Tax settlements often require clear documentation to reflect negotiated compromises and avoid further disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.