Any Accuracy To The Anecdotes About Delinquent Individuals Who Resolve Back Taxes For A Small Fraction Of The Original Amount?

Yes, there absolutely is. This is not just the material of urban folk tale. It presents itself frequently through the use of a method that the dreaded Internal Revenue Service, themselves, has come up with to assist deadbeat tax payers settle back taxes. The program is known as an "Offer in Compromise", or more short form an "OIC". The IRS has been known to admit as little as one (yes that's right, the digit "1") per cent of an quantity unsatisfied on a tax bill and call it settled.

These OIC's are totally up to the government's decision, as there is no legalized entitlement to have a legitimate tax debt marked down by the IRS. That being said, the IRS must give a properly presented Offer appropriate deliberation.

Consider the case of Henry who was living on a set income and discovered himself in default to the IRS in the amount of $13000. That's because a back tax bill can grow at a fast pace with all the additional fees, penalties and interest that they attach to it. These things take on a life of their own after a while. Henry did the smart thing and enlisted the help of a commissioned agent to represent his case to the IRS. The commissioned agent managed a huge reduction from the full amount of $13000, getting it whittled down to a manageable $2000! This was an amount that Henry could bear to repay and get back to his life without the IRS haunting him.

If this OIC option is starting to sound like it could be the answer for you, keep in mind that merely wanting to work a deal with the IRS is not enough of a condition. After all, wouldn't every person like to have his or her tax indenture abated? You first have to meet the specifications for an Offer in Compromise by showing the IRS that one of the following conditions exist:

What the IRS calls "Doubt as to Collectiblity". Plainly put there is some misgiving as to whether they can receive payment of the debt from you.

"Doubt as to Liability". There is some reasonable reservation as to whether you owe the tax bill at all. This one is highly a long shot at best.

Lastly, due to some lessening circumstances, the payment of the full tax bill would cause you an economic misfortune or would be unfair or unjust.

The end result here is if you think you might qualify for one of these sensational reductions in your overdue tax debt, you should seek professional help in making the judgement, and if a good basis exists, hire them to represent you before the IRS. This is not an endeavor you want to do on your own. The saying from the legal profession " he who acts as his own attorney has a fool for a client" would also fit in going before the Internal Revenue Service with an Offer in Compromise.

Any Accuracy To The Anecdotes About Delinquent Individuals Who Resolve Back Taxes For A Small Fraction Of The Original Amount?
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