Wondering about IRS payment plans, offers in compromise, IRS tax liens, bankruptcy laws or have any other general tax questions?  Call our office at 1-866-IRS-PROBLEMS or visit www.taxresolution.com to get them answered! 

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Question: Like others who have asked questions here, I owe a substantial amount to the IRS. But I fear I won’t qualify for the Offer in Compromise programyou have mentioned, because I still make a sizeable salary. Do I have other options?

Answer:  Yours is an excellent question. And I think you’ll like the answer: Yes, you do indeed have options.

If, as you say, you owe a large amount to the IRS, the first thing you should do is consult a qualified tax professional. The reason for that is simple: We often find our clients who are in tax trouble believe they owe more money than they actually do. A qualified tax professional will carefully analyze your tax returns in question to make sure you are not obligating yourself to pay even a penny more than you owe.

Now, it’s possible you may not qualify for the Offer in Compromise program. If, for example, you still make a lot of money, the IRS may not consider you a candidate. For those who are unfamiliar, the Offer in Compromise is program designed for taxpayers who owe a substantial amount but for whatever reason now lack the economic means to pay it. If the taxpayer meets the IRS’s criteria, he or she may submit an Offer in Compromise — oftentimes resulting in a significant discount — that eliminates the IRS debt once and for all.

Assuming you are correct and do not qualify for the Offer in Compromise, however, I would suggest you and your tax professional consider the Installment Agreement - also know as IRS Payment Plans. Under this agreement, you submit monthly payments to the IRS that over time will pay off your debt without significantly affecting your lifestyle. You should look at this the same way you do, say, a car loan. This is a way of paying off your debt without forcing drastic changes now.

I solve tax problems every day. That’s because I’m an IRS Problem Solver. For a free, no-risk tax consultation, please call my office at 866-IRS-PROBLEMS (866-477-7762).

More Tax Help, IRS News and Tax Relief Tips:

1. Certified Tax Resolution Specialist Michael Rozbruch Has a Special Message for You!
2. Offer in Compromise Program or an IRS Payment Plan? Get Your Tax Debt Questions Answered Here!
3. Ask the Tax Resolution Expert: What if My IRS Back Taxes Problem Cannot Be Resolved with the Offer in Compromise Option?
4. Ask the Tax Resolution Expert - Do I Qualify for the IRS Offer in Compromise Plan or Participating in the IRS Installment Agreement Payment Plan?
5. Tax Help For Taxpayers Short on Cash: Filing a Tax Return Late is Better than Filing a False Tax Return

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