In the last 30 days, four clients were able to settle with the IRS, when it accepted our Offers in Compromise. If you owe back taxes, now is the time to explore this option. An Offer in Compromise allows a taxpayer with IRS debt to offer to pay what he can afford. If the IRS believes the offer is equal to or more than it could collect from the taxpayer, it will settle. These taxes include income taxes (1040), payroll taxes, trust fund penalties, and more.
$75 settled $30,000 IRS debt
For example, one of our clients had no equity in their home and their monthly necessary living expenses equaled or exceeded their monthly income. In that case, the amount that the IRS was convinced that they could collect from our clients was zero. The IRS accepted our offer to pay $75.00 to cancel over $30,000 in taxes.
I have been doing offers in compromises for more than 20 years since the program first began. Without a doubt, this is one of the most favorable times to get an offer accepted that I have experienced. If you want to explore this option, give me a call.
by Norm Short, Tax and Business Law Attorney