Have you heard those commercials on TV that claim you can settle your debt with the IRS for just pennies on the dollar with their Offer in Compromise program? The program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay. It's not as easy as the commercials would have you think!
The IRS Code states: "We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential..." (Internal Revenue Code section 7122).
Although it is possible to fully and completely eliminate the taxes you owe - including all penalties and interest - at an enormous discount, there may be extenuating circumstances. There is no preset bottom limit that the IRS will accept to settle your debt especially if your offer is done "right." We are not television actors. We live and work in our local community just like you. Our tax professionals will tell you the truth and not sell you some elaborate plan and then never deliver on the promise!
It's true, if done correctly, your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer. It takes a trained tax professional to understand YOUR situation and help YOU determine the proper offer!