Promising “pennies on the dollar” settlements for your IRS tax debt is not necessarily a true statement. In fact, the court put a stop to these type of statements in advertising campaigns because it's simply not true. Can you settle your tax debt for less than what you owe? The answer is maybe—there are proven and effective ways to substantially reduce your tax liability.
What are your options?
The "pennies on the dollar" promise is a reference to an Offer in Compromise.
Offer in Compromise (OIC) programs allow you to pay the IRS a lump sum to settle your tax burden. Upon acceptance and payment of your Offer, all applicable tax liens are removed, and you can move on with your life.
The IRS has strict guidelines to decide who qualifies for an Offer in Compromise. This is determined by a set of calculations based on your income, assets and allowable living expenses. Generally speaking, those who qualify for OICs are taxpayers with tax debt who are experiencing financial hardship. If it’s financially impossible for you to pay off your tax debt there’s a very good chance that you’re eligible for an OIC settlement for a lesser amount than what you currently owe.
Unfortunately, qualifying for an Offer in Compromise is less than half the battle. Preparing and negotiating Offer in Compromise settlements is a complicated procedure which can take some time to complete.
Can you do it myself? If you have a good grasp on tax law and good research ability then give it a try.
However, your chances of success are dramatically higher with professional help.
To see if you qualify for an Offer in Compromise (OIC) contact us at (208) 935-1040 or schedule an initial consultation.