Offer in Compromise
If you owe back taxes to the IRS and cannot afford to pay them, you may be eligible to participate in an IRS program known as "Offer in Compromise." Much like a debt settlement program for consumer credit debt, the Offer in Compromise program allows taxpayers to settle their tax debt for much less than they owe.
Why would the IRS allow you to pay them less that you owe in back taxes?
If your tax debt is seriously delinquent, the IRS likely assumes that they will not be able to collect on the debt. This is especially true if you do not have any significant property that they can place a lien or levy on, meaning that the IRS is faced with the choice between continuing to receive nothing, or receiving a small amount of money.
What's in it for you?
If you owe the IRS back taxes, but have not yet been contacted by an IRS revenue officer, you may think that your tax delinquency is going unnoticed and you do not have to pay your bill. Nothing can be further from the truth. The IRS can and will make every attempt to collect the debt, including putting a levy or lien on your vehicle, home, or other property. Instead of letting your home become subject to IRS seizure, you can negotiate your bill down through the Offer in Compromise program.
The Offer in Compromise program can help you settle your tax debt for pennies on the dollar. Research has found that program participants typically pay less than 20% of the original amount they owed to the IRS, and the full debt is forgiven upon payment. Instead of living in fear of having the IRS take your car or even your home to satisfy your tax debt, satisfy your debt for less with an Offer in Compromise.
If you're interested in settling your tax debt for less through the Offer in Compromise program, you need the help of an experienced tax resolution firm to navigate the process. Itri & Co has 27 years of experience working with the IRS to help clients find a solution to their tax problems, including negotiating debt down through an Offer in Compromise.