Friday, September 5, 2008

Pennies On The Dollar Tax Settlement

You owe the IRS a large sum of money and you want to settle your tax debt for “pennies on the dollar.” The Offer In Compromise is the key to your problem. This is a program offered by the IRS whereby you can offer the IRS LESS than what you actually owe to settle your entire tax debt. You must qualify financially for the program, however.

The program is complex requires a high degree of sophistication to effectively calculate your offer amount and structure your offer. This is best handled by someone with considerable experience in this particular method of tax resolution. You can do it yourself but if you do you may be putting yourself at great risk.

If you choose to “go it alone” there are some things you should consider. You may offer the IRS too much! This may put you in a position that you cannot afford which would ultimately jeopardize your agreement. Or you may offer too little in which case the IRS will consider your case a frivolous offer and reject it. If your offer is denied on this basis the IRS may construe your frivolous offer as an attempt to delay or obstruct the collection process and may turn your case over to the Criminal Investigation Division of the IRS for criminal investigation. Don’t chance it! Hire a professional! At the very least obtain some degree of professional tax consultation. Good luck!

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