Did you know that you may be able to settle your debt with the IRS for a fraction of what you owe? The IRS Offer in Compromise program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay.
The IRS Code states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…” (Internal Revenue Code section 7122).
Often it is possible to fully and completely eliminate the taxes you owe – including all penalties and interest – at an enormous discount. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done “right.”
If done correctly your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
However, even with all this being said, have you seen the commercials on television promising, yes promising, that you CAN settle for pennies on the dollar? These are well put together commercials and can lead you to believe that it is an easy process. Thankfully, they do put some disclaimers on their commercials. The trouble is, they go by so fast that you can’t read them. So, in the spirit of assisting those who want to know what those disclaimers are, we are publishing them below:
“Testimonials reflect individual offers and are atypical. Acceptance amounts are not based on averages. Paid actors are used for dramatization. Only 25% of all Offers in Compromise are accepted by the IRS. Not all taxpayers qualify for relief. Results vary amongst taxpayers.”
What this means is that not everyone qualifies. In fact, the stories they tell are not typical of actual results. Only 1 out of 4 taxpayers will be accepted into the OIC program. Remember this, and you will be fully informed.
If you don’t qualify for the IRS Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you more time to pay off your tax debts without the IRS forcing collection.
Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt.
The good news is that there’s a chance we can get your tax penalties removed.
Are you having tax problems and cannot pay what you owe? If that is the case, we can see whether an Offer in Compromise is a good fit for you. It could be that you are a good candidate for one. We will need to ask you a few questions to make a good determination.