Offer in Compromise
Will IRS accept "pennies on the dollar?"
Yes, you may be able to make your huge tax debt go away for less than 100 cents on the dollar, but the process isn't simple. Anybody can file an offer in compromise as my As Seen on TV counterparts will tell you, but that doesn't mean it will be accepted.
IRS will accept an offer in compromise when it has been convinced you are offering all it can collect. This is better than writing a case off or starting a payment agreement that has a high potential to go sour. The IRS wants to collect what it can be collected as quickly as possible and at the least cost to the government. You want to pay as little as possible and get on with your life.
Preparing the required paperwork and presenting your case is intimidating. Most self-prepared offers are rejected because paperwork is incomplete or the amount offered is obviously less than what the taxpayer can pay. Your have to show that enough is being offered. Professional help will increase your chances of determining if this is the right solution for you and make sure you don't pay too much.
Many states offer their own versions of an Offer in Compromise program, and may offer payment plans and penalty relief as well. Information gathered to document an IRS Offer in Compromise can do double duty if you owe state taxes too.
Offers can be accepted if there is doubt that the amount assessed is correct or if you can pay but have special circumstances. These offers are very unusual. If you don't agree with what IRS says you owe or there is some compelling reason it shouldn't demand you pay what you owe, we can discuss one of these types of offers.
If I don't think you will qualify, I will tell you so without hesitation then try to find the solution that works best for you.
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Michael S. Cash, Enrolled Agent
Toll Free Phone (866) 711-9467