IRS Debt? 7 reasons bankruptcy is often used to deal with it

IRS Debt and Bankruptcy No one likes bankruptcy, except bankruptcy attorneys.  For most Americans, it remains a very negative process.  In fact…many of our clients refuse to even consider bankruptcy during a first meeting.  I don’t blame them.  It is interesting however, how many of Read More …

No the IRS Fresh Start Program Doesn’t Include Penalty Abatement – Sorry

Almost every person who contacts me asks about getting rid of IRS penalties.  There are two reasons I think this happens: 1.  Many Americans believe in paying debt and see tax as a debt.  But they regard penalties as just unwarranted punishment. 2.  Many people have Read More …

TAX DEBT AND HIGH INCOME? Bankruptcy may be the solution

Tax Debt and High Income?  Bankruptcy may be the solution More than 1 million people each year file for bankruptcy in the United States. That number always incudes some famous types. Yes famous and “important” people use Bankruptcy. In fact many people are shocked when Read More …

Offer In Compromise – IRS payment plan in Arizona? You may want to look closely at the IRS Offer In Compromise Rule Changes

I have complained in the past about the IRS Offer in Compromise program and with good reason. The vast majority of IRS Offers filed failed at a rate of more than 75% on average nationwide. For most people with serious tax debt the rules just Read More …

IRS DEBT? IT CAN BE SOLVED

IRS Debt: The stuff of sleepless nights and serious regrets. If you have a serious tax debt ,you may have some regrets and worse…you may feel as if there won’t be a viable solution. I can tell you though that for many people with serious tax Read More …

IRS Offer In Compromise – 4 Reasons Most Offers Fail

An “offer in compromise” is simply an offer to settle tax debt made by the taxpayer to the IRS that may result in a settlement agreement between the two.

The real driving force behind the process is that…like most creditors, the IRS is smart enough to know when a “bird in the hand” is worth more than “two in the bush”, i.e. if it really believes that it will get less in the end, it will agree to take what it can now, and call it a day.

The initial standard used to determine the “bird in the hand” value is whether the amount being offered by the taxpayer to settle the debt once and for all, is greater than or equal to the “reasonable collection potential” of that taxpayer. (RCP)
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