Ask The Tax Resolution Expert: Is the IRS Offer in Compromise Program too Good to be True?
Michael Rozbruch is a Certified Tax Resolution Specialist who solves IRS problems every day. Read on about Michael’s advice on the IRS Offer in Compromise program. Tax Resolution Services has an Offer in Compromise settlement rate of $0.106 on the Dollar. If you need tax help, Tax Resolution Services offers a free professional tax consultation by calling 1-866-IRS-PROBLEMS (1-866-477-7762).
Question: I believe in the old adage that “If it’s too good to be true, then it probably is.” Explain to me why that shouldn’t apply to the Offer in Compromise program you have talked about in previous issues.
Answer: Great question. Skepticism is a good, healthy thing, and everyone should be skeptical at first when it comes to tax advice. You want to make sure you’re dealing with a qualified tax professional.
First off, let me assure you the Offer in Compromise, while a wonderful program for those who qualify, is not too good to be true. The reason for that is in those four words in my last sentence: for those who qualify.
The IRS isn’t handing out Offers in Compromise to every taxpayer with tax debt. The U.S. tax-collecting agency doesn’t operate on a pay-what-you-wish model by any means. The Offer in Compromisewas designed for a specific group of taxpayers who amassed sizeable tax debt through previous earnings and interest but who — for reasons that could be personal, professional or medical — are simply unable to pay that debt off, even over time.
While this program may seem counterintuitive for an agency tasked with collecting money Uncle Sam is owed, it actually isn’t: For taxpayers who simply can’t pay their debt, the Offer in Compromise offers a greater collection rate for the government overall than the bare-knuckled approached that resulted in fleeing taxpayers ever did.
Nevertheless, this program can be very good news if you qualify for the Offer in Compromise: By negotiating a settlement offer with the IRS, you can reduce your tax debt to a fraction of what you owe. A tax professional will first review your previous returns — coming to the exact amount you owe the IRS — and then you and your tax professional will negotiate your Offer in Compromise.
Michael Rozbruch is an IRS problem solver. For a free, no-risk tax consultation, fill out the online form or call 1-866-IRS-PROBLEMS.
More Tax Help, IRS News and Tax Relief Tips:
- Ask the Tax Resolution Expert: What if My IRS Back Taxes Problem Cannot Be Resolved with the Offer in Compromise Option?
- Insider Tips from Certified Tax Resolution Specialist on How to Avoid a Tax Settlement Scam if You Have Tax Troubles
- Ask the Tax Resolution Expert – Offer in Compromise Can Help with Tax Debt
- Ask the Tax Resolution Expert – Qualifying for the IRS Offer In Compromise Program for Taxes Owed
- Ask the Tax Resolution Expert – Do I Qualify for the IRS Offer in Compromise Plan or Participating in the IRS Installment Agreement Payment Plan?
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