The Tax Resolution Expert Weighs in on Tax Debt Relief Options: Offer in Compromise or the IRS Installment Agreement?

A note from Michael Rozbruch:  Tax debt is a serious burden for many.  Tax debt relief can change a person’s life.  As a Certifed Tax Resolution Specialist, I know this first hand.  I am the founder and CEO of Tax Resolution Services and have worked tirelessly to help clients find tax debt relief.  In the past decade, Tax Resolutions Services have saved clients an excess of $52 million dollars!  Needless to say, Tax Resolution Services’ tax advice is second to none, just like Tax Resolution Services’ tax relief success rate!  If you are seeking tax debt relief, call Tax Resolution Services for a free professional tax consultation at 1-866-IRS-PROBLEMS (1-866-477-7762) or fill out a simple online form. 

Question: Like others who read IRS Times & Inquirer, I owe a significant debt to the IRS. Which program would be better for me — the Offer in Compromise or the Installment Agreement?

Answer:  Those are two great programs for people with significant tax debt, and one of those programs might be right for you. However, without reviewing your case in detail, I can’t say with authority which program you should pursue.

Let me tell you a little about each program, and this may allow you to determine the answer.

The Offer in Compromise was implemented by the IRS following the tax-collecting agency’s realization that the strong-arm, door-knocking technique of tax collection isn’t always the most effective. In fact, this kinder, gentler approach is as effective, if not more effective, than the old ways. This program is designed for taxpayers who owe a significant amount to the IRS but who, for whatever reason, are unable to pay the debt, even over time. Under this program, you and your tax professional can negotiate a settlement amount with the IRS that can result you paying far less than you owe.

Now, you may not qualify for the Offer in Compromise program. Your capacity to pay back the debt, for example, might be too high to qualify. If that is the case, then the Installment Agreement (IRS Payment Plan) could be your best option. Under this program, you can pay down your tax debt over time by making small monthly payments. Think of this like a car payment — enough each month to pay down the debt over time but not so significant that you need to alter your lifestyle dramatically.

If you indeed have tax debt and are considering one of these options, your first step should be to consult a qualified tax professional. He or she will analyze your previous returns and chart your course to freedom from the IRS!

Michael Rozbruch is an IRS problem solver. For a free, no-risk consultation, please call Tax Resolution Services at 1-866-IRS-PROBLEMS and get started on the road to tax debt relief today!

More Tax Help, IRS News and Tax Relief Tips:

1. Certified Tax Resolution Specialist Michael Rozbruch Has a Special Message for You!
2. Ask the Tax Resolution Expert: What if My IRS Back Taxes Problem Cannot Be Resolved with the Offer in Compromise Option?
3. Ask The Tax Resolution Expert – Is the IRS Offer in Compromise Program or IRS Payment Plan for me?
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. Resolve Back Tax Debt Today! Evade Taxes and End Up in Prison like NY Businessman

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This entry was posted on Monday, April 19th, 2010 at 12:30 pm and is filed under IRS Question Corner, IRS Times and Inquirer, Offers in Compromise, tax help. 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.