Ask the Tax Resolution Expert: What if My IRS Back Taxes Problem Cannot Be Resolved with the Offer in Compromise Option?

Got IRS back taxes?  There is no better time to find tax relief!  Tax Resolution Services will assist you in resolving your tax debt.  Got a tax question?  Tax Resolution Services will answer your tax question. Call us at 1-866-IRS-PROBLEMS or visit www.taxresolution.com

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Question: Like others who have written in questions to you, I have significant tax debt. I am interested in the Offer in Compromise option, but you have said one must qualify for this option. What if I don’t qualify?

Answer:  That’s an excellent question — one to which every person who has tax debt and is considering an Offer in Compromise should understand the answer.

You’re right in saying you must qualify for the Offer in Compromise — that is to say, not everyone is eligible. For those who do not know, the Offer in Compromise program allows taxpayers with significant tax debt to negotiate settlement amounts with the IRS that often come to a small percentage of what they owe. Here’s the important part: To qualify for the program, the IRS must believe you do not have a reasonable ability to pay your debt in full, even over time.

This is the situation for many people with tax debt. Their debt may be related to a failed business, poor tax advice, or rising and unexpected costs in their lives, such as medical costs. In short, these are people whose financial situations have changed so drastically they will not be able to pay their tax debt.

But the Offer in Compromise isn’t the only option. For those with tax debt who do not qualify for the Offer in Compromise program, a good option is the Installment Agreement. Under this agreement, the taxpayer works out a payment plan with the IRS that eliminates the tax debt over time. This is similar to a monthly car payment — a large enough payment to pay off a significant debt over time but not so large that it will adversely affect your lifestyle.

Whether you are interested in an Offer in Compromise or an Installment Agreement, you should first consult a qualified tax professional in your area.

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A personal message from Michael Rozbruch, Certified Tax Resolution Specialist:  I handle tax problems and IRS negotiations every day. That’s because I’m an IRS problem solver.  If you have IRS back taxes that worry you, pick up the phone for a free, no-risk tax consultation.  Call my office, Tax Resolution Services, at 1-866-IRS-PROBLEMS (1-866-477-7762) or fill out our online form for a free tax consultation.

More Tax Help, IRS News and Tax Relief Tips:

  1. Ask the Tax Resolution Expert – Do I Qualify for the IRS Offer in Compromise Plan or Participating in the IRS Installment Agreement Payment Plan?
  2. Certified Tax Resolution Specialist Michael Rozbruch Has a Special Message for You!
  3. Ask the Certified Tax Specialist – Small Business Back Taxes
  4. Instead of Paying IRS Back Taxes, ‘Intelligent Alternative’ Radio Host Fails to File Tax Returns
  5. Tax Help: Brian Compton Shares 7 Secret Weapons For Taxpayers to Fight the IRS on Big Biz Show

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This entry was posted on Monday, February 8th, 2010 at 12:46 pm and is filed under Ask the Expert, Back Taxes, IRS Question Corner, IRS Times and Inquirer, Offers in Compromise, Seeking Professional Tax Help, Working with the IRS. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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