If you don’t qualify for the IRS Offer In Compromise program, a Payment Plan may be the way to resolve your problem. Setting up a payment plan with the IRS gives you a little more time to pay off your tax debts.
Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off.
Offer in Compromise
Did you know that you can settle your debt with the IRS for just PENNIES on the dollar? What? Yes, with the IRS’s Offer in Compromise program, this is possible.The program allows taxpayers to settle with the IRS on tax debt that has been incorrectly assessed or for liabilities they cannot afford to pay.
The IRS Code section 7122 states: “We will accept an Offer in Compromise when it is unlikely that we can collect the full amount owed and the amount you offer reasonably reflects the collection potential…”
If your paperwork is done correctly, your debt may be settled for only 5-15% of what you presently owe. The key is to determine the least amount that the IRS will accept from you before you make the offer.
Innocent Spouse Relief
Did you know that you can get out of the tax debt due to the misdeeds or fraud committed by your spouse? Innocent Spouse Relief is designed to alleviate unjust situations where one spouse is clearly the victim of fraud perpetrated by their spouse or ex-spouse.
If you qualify for Innocent Spouse Relief, you may not owe any tax.