| When you owe the IRS back taxes you have to pay | | | | through an installment agreement or in one lump sum. In |
| them in some way, shape, or form before things get | | | | other words, do not expect the IRS to settle with |
| worse on you. Remember, they have the power to | | | | everybody; this is not going to happen. |
| exercise liens, levies, etc. Is this something that you | | | | The IRS may decide to accept an offer in |
| want to risk? One thing that many people in this | | | | compromise under one of the following three |
| position do not consider is an offer in compromise. This | | | | circumstances: doubt as to liability, doubt as to |
| is a good option for paying your back taxes, and even | | | | collectability, and effective tax administration. |
| though you may not qualify, it would be in your best | | | | If you feel that you qualify for an offer in compromise |
| interest to at least see if you can get approved. | | | | you may need to hire a firm specializing in this area. |
| What is an offer in compromise and how can it help | | | | This is much more extensive and time consuming than |
| me to pay back taxes? Generally speaking, it means | | | | any other form of paying back taxes. Additionally, you |
| that you make an agreement with the IRS to pay less | | | | only get one chance at having the IRS accept your |
| than what you actually owe. As you can imagine, this | | | | offer in compromise. |
| is something that everybody who owes back taxes | | | | If the IRS accepts an offer in compromise it means |
| wants to do. Who wouldn't want to settle their tax | | | | that you will not pay all that you owe in back taxes. |
| debt with the IRS? This means less money coming out | | | | Instead, you will pay a percentage of the total and |
| of your pocket. Of course, the IRS will not accept an | | | | upon doing so in full you will be back in good standing |
| offer in compromise unless there are documented | | | | with the IRS. |
| circumstances proving that you cannot afford to pay | | | | |