Question: I owe $74,367 for several years of back taxes but do not have the money to pay the IRS. I want to get them off my back and heard of something called an Offer in Compromise. What is it and how do I qualify?
Answer: An Offer in Compromise is the IRS’ tax resolution debt settlement program. It’s a program for taxpayers who owe the IRS more money than they can ever afford to pay. It’s the IRS’s version of a “fresh start” when it comes to tax debt. If approved, the IRS accepts a lesser amount (sometimes a fraction of what’s owed!) to settle your debt. However, it isn’t always easy to gain approval due to its strict criteria and eligibility requirements.
The IRS considers your income, assets, expenses, ability to pay, and whether paying the full amount, even over time, would cause financial hardship. It’s important to remember that the IRS wants its money and will only accept an Offer in Compromise if it thinks it wouldn’t receive any money otherwise.
Your odds for acceptance increase significantly when you have an experienced tax resolution specialist negotiating with the IRS on your behalf. If you do qualify, we get to work immediately by implementing a customized resolution plan that fits your unique circumstances.
We at Jim Matthews CPA are experts in IRS tax problem resolution and help taxpayers with their IRS Problems every day. There is a solution to EVERY problem. Generally, you’ll never have to meet or speak with the IRS once you bring us into the picture. Call us today!