This potential option may NOT have been used as much as it may in today’s economic collapse. People really ARE losing everything…houses, cars, jobs, families…EVERYTHING. So what happens if you owe a tax liability from ‘better days gone by’ and cannot even pay for a cup of coffee? The I.R.S. has ‘you’re back!’ A little known I.R.S. ‘Offer In Compromise‘ may save the day and bunches of bucks for you!
How Does It Work
Well as with many things, there ARE forms to file. But basically when you apply for this assistance to settle your tax debt the I.R.S. must ‘formulate and calculate’ your ‘ability to pay’ along with all your assets. If ‘all your assets are truly GONE’ then there shouldn’t be much of a problem. But the feds will look at your income potential, as well as ANY income you have now…and look at what you have that COULD be sold to satisfy the debt. Its sort of like…if everything ISN’T already lost, it will be once they attach a monetary value to it! Evaluating your potential earning power, COULD be a problem. Just because you have the potential to do a certain professional job, doesn’t mean you can get one in THIS economy. So it is likely if this is YOUR situation, you will have to be ready to ‘haggle’ for your tax relief!
The real ‘bottom line’ is nothing will completely relieve you of the debt…all you can pray for is for an Offer in Compromise to lower your tax debt. And there is a $150 filing fee, which of course is like a million dollars if you have lost EVERYTHING. But if you qualify under the I.R.S low income guidelines this fee could be waived.
