On February 3, 2004 the IRS issued a “Consumer Alert”. The subject of the alert? “beware of promoter’s claims that tax debts can be settled for ‘pennies on the dollar’ throughout the offer in compromise program.”
VISIT http://www.irs.gov/newsroom/article/0,,id=120169,00.htmlto read the entire document.
The problem… A number of the sales firms who disguise themselves as tax problems resolution professionals have led many to believe that if you run into tax trouble the IRS will simply make a deal.
The real story is that the Offer in Compromise program exists and works wonders for some, i.e those who qualify. Most with substantial tax debt don’t. In the last 10 years the majority of offers in compromise have failed.
There are just a few things that you need to know before you call the late night commercial tax problem solver.
1. If you owe back taxes, every collection decision belongs to the IRS and the decision they make is based on their opinion about your ability to pay. What is fair is irrelevant.
2. Many expenses you consider normal aren’t considered normal by the IRS.
3. You need someone to fully analyze your situation, who has is bound by an ethical duty to you and not the pocketbook in order to get an honest, objective answer about your chances.
