The answer is yes, if you qualify. Many people find themselves in a situation where they owe the government back taxes. Many of those same people have fallen on hard times and cannot pay. In helping out a family friend today, I found the IRS Offer in Compromise program. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. The government considers your ability to pay, income, expenses and asset equity.
They generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone.
If you want to know more about the program please go to www.irs.gov and type offer in compromise in the search box. There is a step-by-step guide on how to fill out the forms.
Call us for more information on what steps to take.