A Viable Alternative – IRS Installment Agreements

If you find yourself unable to pay your federal income taxes then you have a problem…the bigger the debt the bigger the problem. For those owing $100,000 or more it’s pretty much a no brainer that they need some help. After all that’s a lot of money and there is probably a lot at stake with their situation, piece of mind and all. For those owing under $100,000 it becomes a little more questionable for them as to whether they need representation or not. They think they ought to be able to do for themselves. After all the IRS has much bigger fish to fry and with all the tax evaders out there they probably don’t have the manpower to waste on those relatively small dollars. And the IRS, being the benevolent organization that they are, will understand their situation and be reasonable and fair about the whole thing.

Settling Your Tax Debt – Offer in Compromise

As a former IRS Agent and Instructor, I am asked all the time how and where does the IRS get their tax levy information? The answer is very simple and may surprise you. It comes from you. Yes, you usually give them your own tax levy information. The IRS does little to have to find it.

Settling Your Tax Debt – Offer in Compromise

An Offer in Compromise is an agreement between the taxpayer and the government that settles a tax liability for payment of less than the full amount owed. The goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government. The program is not designed to simply allow taxpayers to get out of paying their tax obligations. In fact it is quiet the opposite…it is designed to allow the government to collect something when it is unlikely that the tax liability can be collected in full. The requirements are largely financial in nature and are more strict than most would think after hearing advertisements flood the marketplace that make it sound easy to settle with the IRS for “pennies on the dollar”. While some cases may very well settle for pennies on the dollar a taxpayer’s situation has to meet certain criteria for that to be the case. An OIC is a legitimate alternative to declaring a case currently not collectible or to a protracted installment agreement. It is crucial that professional representation be obtained in preparation and submission of an OIC as relatively few are approved.

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